FPIs withdraw Rs 4,200 cr in Sept so far

New Delhi: After six months of consistent buying, foreign portfolio investors (FPIs) have turned net sellers to pull out Rs 4,200 crore from equities in September, so far, on rising US bond yields, a stronger dollar and concerns over global economic

growth.

The outflow of foreign portfolio money could continue in the coming week or two, Nitasha Shankar, Chief Investment Advisor, YES Securities (India) Ltd, said.

“We also need to keep an eye on the sharp volatility in the rupee, which could impact FPI flows going ahead,” he added.

According to the data with the depositories, foreign portfolio investors (FPIs) pulled out a net sum of Rs 4,203 crore from the equities, so far, this month (till September 8).

This came after FPI investment in equities had hit a four-month low of Rs 12,262 crore in August.

Before the latest outflow, FPIs were incessantly buying Indian equities in the last six months — from March to August — and brought in Rs 1.74 lakh crore during the period.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the reversal in trend in September to the rising US bond yields and the uptrend in the dollar index.

Shankar said the main reasons for the outflow can be attributed to a stronger dollar as the Dollar index continued its strong upward momentum and the rising US 10-year treasury bond yields, touching a 15-year high in the week

gone by.