FPIs pull out `1,200 cr from equities in October

Overseas investors have pulled out nearly Rs 1,200 crore from the Indian stock market in October, making it the first monthly withdrawal in 14-months, mainly on account of profit-booking. In comparison, the debt market saw huge inflow of around Rs 18,000 crore during the period. Foreign investors were gross buyers of equities worth Rs 69,317 crore last month and sellers to the tune of Rs 70,488 crore, registering a net outflow of Rs 1,171 crore ($190 million), according to the latest data.The was also the first instance of monthly withdrawal by overseas investors (Foreign Institutional Investors or Foreign Portfolio Investors) since August last year, when they had pulled out Rs 5,923 crore. The latest outflow comes after overseas investments in the stock market hit seven months low in September. 'We have witnessed an outflow in this month mainly due to profit booking and the market is also in a consolidation mode,' CNI Research Head Kishor Ostwal said. He further said that the long-term prospects of staying invested in India are still positive. From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by capital market regulator Sebi to create a new investor category called FPIs.