Foreign investors have pulled out nearly Rs 6,000 crore from the Indian capital markets in just six trading days of the month primarily due to better opportunities in other emerging nations.
Net withdrawal by foreign portfolio investors (FPIs) from equities stood at Rs 2,410 crore during March 1-9, while the same from the debt market was Rs 3,473 crore, translating into a total outflow of Rs 5,883 crore, depositories data showed.
This follows an outflow of over Rs 11,000 crore from the capital markets –equity and debt last month.
“FPI outflows from Indian markets are a result of growing demand for the US dollar, coming from the expectation of an increase in the Federal rate. FPI may also be pulling funds from India to invest in other growing economies,” Harsh Jain, co-founder and COO at Groww said.