Millennium Post

FPIs remain in sell-off mode, pull out Rs 11,362 cr in Feb

Overseas investors have pulled out a massive over Rs 11,350 crore from Indian capital markets this month so far, primarily on account of a continuous fall in crude oil prices and worries over a global slowdown.

This has taken the total outflow to Rs 20,177 crore ($3 billion) since the beginning of the year. 

According to the data available with depositories, foreign portfolio investors (FPIs) took out Rs 4,937 crore from equities during February 1-26 while Rs 6,425 crore was withdrawn from the debt market in the same period, leading to a net outflow of Rs 11,362 crore ($1.66 billion).

In January, FPIs pulled out a net Rs 13,381 crore from equities while they infused Rs 3,274 crore in debt. Capital inflows by FPIs are often referred to as hot money because of its unpredictability though it continues to remain one of the key drivers of the stock market.

"A major chunk of FPI money is sovereign wealth funds that belongs to wealthy nations. The Middle East region is one of the largest suppliers of crude and their revenues in crude was used by their sovereign wealth funds to invest in emerging markets globally," said Siddhant Jain, Chief Operating Officer (COO), SAS
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