Overseas investors have pulled out more than Rs 7,800 crore (USD 1.2 billion) from the Indian debt market so far this month amid concerns about the US government shutdown.
Foreign institutional investors (FIIs) were gross buyers of debt securities worth Rs 5,541 crore during October 1-11, while they sold Rs 13,365 crore of bonds, resulting in a net outflow of Rs 7,824 crore.
In September, FIIs had pulled out a net Rs 5,600 crore of debt securities, according to data available with market regulator, the Securities and Exchange Board of India.
Market experts attributed the sell-off to global cues, including the US shutdown.In the equity market, foreign investors pumped in a net Rs 3,230 crore so far this month.
India’s current account deficit in Q1 widened to $21.8 billion, or 4.9 per cent of GDP, from $16.9 billion, or 4 per cent of GDP, a year earlier, the Reserve Bank of India said on September 30.
Excluding the increase in gold imports of $7.3 billion in Q1 over the corresponding quarter of the preceding year, the CAD would have been $14.5 billion, or 3.2 per cent of GDP, the RBI said.