FPIs nov net outflow at $1.5 bn

Foreign investors pulled out more than $1.5 billion from the country’s capital markets this month due to lacklustre quarterly earnings and concerns over a possible rate hike by the US Federal Reserve. The sell-off came after Foreign Portfolio Investor (FPI) inflow in the capital markets (equity and debt) hit a seven-month high in October. As per the data compiled by the depositories, net outflow in equities stood at Rs 6,616 crore in November, while it was Rs 3,207 crore from debt, translating into a total of Rs 9,823 crore ($1.5 billion). One day trading session is still left for the month. FPIs had made a net investment of Rs 22,350 crore last month, making it the highest investment by them since March, when they had poured in Rs 20,723 crore into the Indian market. The huge inflows during October also reversed the outflows seen during the last two months. FPIs pulled out over Rs 23,000 crore from the capital markets in the last two months (August-September) on fears of an economic slowdown in China, which triggered a global sell-off. The minutes of the latest US Fed meeting showed that it is ready for a December lift-off, provided subsequent actions are strongly tied to consistent improvements in the economy, which prompted investors to withdraw money.