Foreign investors pull out `800 cr from equity mkt

Overseas investors have pulled out nearly Rs 800 crore from the Indian stock market since the beginning of this month, mainly on account of profit booking.

In comparison, the debt market saw huge inflow of over Rs 6,300 crore during the period.

Foreign investors were gross buyers of equities worth Rs 20,252 crore till 10 October and sellers to the tune of Rs 21,038 crore — a net outflow of Rs 786 crore ($128 million), according to the latest data.

The outflow comes after overseas investments in the stock market hit seven months low in September.

Market experts attributed the outflow to profit booking and consolidation in the equity market.

‘We have witnessed an outflow in this month mainly due to profit booking and the market is also in a consolidation mode,’ CNI Research Head Kishor Ostwal said.

He further said that the long-term prospects of staying invested in India are still positive. Overseas investors had pumped in a little over Rs 5,100 crore in Indian equity markets in September, making it the lowest net investment since February when they had infused Rs 1,404 crore.