FPIs pull out Rs 2,415 cr from capital markets

As per latest depositories data, FPIs invested a net amount of Rs 777 crore in equities and pulled out Rs 3,192.7 crore from the debt segment between January 1-10. This translates into a cumulative net outflow of Rs 2,415.7 crore. Overseas investors have turned net sellers in January after remaining buyers for four consecutive months since September 2019.

“Cautiousness among foreign investors was apparent as they closely watched the developments on the global front before investing in the Indian equity markets. Turmoil triggered by increased tension between US and Iran played a key role in the way equity markets behaved globally,” said Himanshu Srivastava, senior analyst manager research at Morningstar Investment Adviser India.

The US and Iran have shown intentions to de-escalate tensions. This may result in the rebuilding of risk-on sentiment which may be positive for foreign flows into Indian equity markets going ahead, he added.