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FPIs press exit button, take out Rs2,500 crore in June

Foreign investors pulled out a little over Rs 2,500 crore from Indian stock markets this month, mainly on account of better returns from Asian peers and uncertainty over Greek debt crisis.

However, in debt markets, foreign portfolio investors (FPIs) invested Rs 2,300 crore in the country during the same period. FPIs made gross purchase of shares to the tune of Rs 1,03,532 crore during June 1-26 while they sold stocks worth Rs 1,06,088 crore, taking the total net outflow to Rs 2,556 crore, latest data from depositories showed. "FPIs have been withdrawing money from the domestic capital markets as they are finding China more attractive than India. The neighbouring country has given a return of 50 per cent. Besides, FPIs are worried over a slow revival in corporate earnings," Geojit BNP Paribas Investment Strategist V K Vijaykumar said. Furthermore, <g data-gr-id="17">sentiment</g> was also hit after Greece failed to reach an agreement with its creditors ahead of a debt deadline.

Anand Shah, Chief Investment Officer, BNP Paribas Mutual Fund, said: "There is nothing to worry about FPIs' flight from the Indian stock markets. In medium to long term, India is an attractive place for investment. 

“FPIs will start investing in our markets when issues of Greece and rate hike by US Federal Reserve get sorted out." 
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