Foreign investors withdrew Rs 10,355 crore from the country’s equity markets in the last four trading sessions this month due to sweeping tariffs imposed by the US on most nations, including India. The outflow occurred after a net investment of Rs 30,927 crore in the six trading sessions from March 21 to March 28. This infusion helped reduce the overall outflow for March to Rs 3,973 crore, according to data from the depositories.
In February, FPIs pulled out Rs 34,574 crore, while the outflow was higher at Rs 78,027 crore in January. This shift in investor sentiment highlighted the volatility and evolving dynamics in global financial markets. Going forward, market players will closely track the long-term impact of the proposed tariffs, along with upcoming announcements from the RBI regarding its monetary policy stance amid expectations of a potential rate cut, said Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India.
