Foreign investors have pulled out nearly Rs4,000 crore from the stock markets in the last four trading sessions amid weak GDP numbers and lacklustre global cues.
This comes on top of a record net outflow of Rs17,428 crore from equities last month. This was the highest net outflow by foreign portfolio investors (FPIs) in a single month since 1997.The segregated data prior to 1997 was not available.
FPIs withdrew a net sum of Rs3,825 crore from equities during September 1-4, according to depositories data, which include Friday's provisional figures.Market experts attributed the huge outflows to sustained global risk-off trend along with concerns over economic slowdown in China.
Besides, China's weak PMI and lower GDP growth in India dampened sentiments. Moreover, the stance of the US Fed continued to affect investor sentiment, they added.However, analysts believe that the outflows are unlikely to continue for a long time.
The growth data showed the economy grew at 7 per cent in April-June, from 7.5 per cent in the preceding quarter.