Overseas investors sell `178 cr worth shares in 2 weeks

In March-April, Foreign Portfolio Investors (FPIs) had pumped in a net Rs 29,558 crore into equity markets. The data sourced from the depositories showed that FPI withdrew a net amount of Rs 178 crore from Indian equities till May 13.

 However, FPIs have invested Rs 595 crore in the debt markets during the period under review. Capital poured in by FPIs is often referred to as 'hot money' because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.

The apprehension over tax on capital gains made through P-Notes (Mauritius) has negatively impacted the inflow. The short-term investments from FPIs may get hurt in the near-term, said Vinod Nair Head of Research at Geojit BNP Paribas Financial Services.

Besides, worries over global economy have impacted investor sentiment.