FPIs pull out net Rs 6,105 crore from capital markets so far in this fiscal

New Delhi: Foreign portfolio investors (FPIs) pulled out a net Rs 6,105 crore from the Indian capital markets so far in the ongoing financial year amid the pandemic and resultant restructions in many parts of the country.

The equity benchmark BSE Sensex has jumped 3,077.69 points or 6.21 per cent during April-July this fiscal.

Reflecting an upbeat sentiment in the market, the benchmark had reached its all-time high of 53,290.81 on July 16, 2021. It closed at its lifetime high of 53,158.85 on July 15.

According to the depositories data, Rs 6,707 crore were withdrawn on a net basis from equities during the initial four months of this fiscal. At the same time, a net sum of Rs 602 crore were invested in the debt segment. This took the total net withdrawl to Rs 6,105 crore during the period under review.

The data showed that FPIs were net sellers in all the months barring June when they had invested Rs 13,269 crore.

The net outflow stood at Rs 9,435 crore in April, Rs 2,666 crore in May and Rs 7,273 in July.

"What is encouraging during the first four months is the fact that the number of new investor registrations in India is up 2.5 times year on year as per data released by the NSE," said S Ranganathan, head of research at LKP Securities.

Market experts noted that the financial year started with a surge in COVID-19 cases and the consequent restrictions imposed by various states which dented investors' sentiment.