Foreign investors turning away from Indian markets! FPIs withdrew Rs 18,856 crore in February so far
Foreign portfolio investors (FPIs) have pulled out a net Rs 18,856 crore from Indian markets so far in February, amid rising global tensions and the prospect of a rate hike by the US Federal Reserve. According to depository data, foreign investors pulled out ₹15,342 crore from equities and ₹3,629 crore from the bond market between February 1 and 18. Also, he invested Rs 115 crore through Hybrid.
Money withdrawn for the fifth consecutive month
Foreign investors’ net outflows stood at Rs 18,856 crore in February. Let us tell you that this is the fifth consecutive month that foreign funds have withdrawn from the Indian markets. The net outflow of FPIs from Indian equities in the last one year is close to USD 8 billion. This figure is the highest since 2009.
Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, said, “The rising global tensions and the prospect of a rate hike by the US Fed has led to FPIs losing their confidence and exiting from the Indian equity markets in the recent past. The withdrawal comes after the US central bank indicated a hike in interest rates.
At the same time, Shrikant Chauhan, Head-Equity Research (Retail), Kotak Securities, said that due to rising tensions between the US and Russia over Ukraine, investors are turning to safer investment options like bonds and gold.
