Mumbai: The foreign portfolio investors (FPIs) withdrew Rs 1.4 lakh crore from the Indian equity market in the financial year 2021-22. FPIs also invested Rs 2.7 lakh crore in the Indian share market in the preceding fiscal year. According to market experts, the rise in the coronavirus cases, concerns over the risk to economic recovery and Russia-Ukraine war has influenced investors. As per them, the foreign fund inflow will remain volatile in the near term, due to elevated crude prices and inflation.
According to data , this was the worst ever exodus by FPIs from the Indian equity market. FPIs withdrew Rs 88 crore in 2018-19, Rs 14,171 crore in 2015-16 and Rs 47,706 crore in 2008-09. From April 2021 to March 2022, FPIs were net sellers in Indian equities to Rs 1.4 lakh crore. They have withdrawn 9 of the 12 months in the just concluded financial year. They have been selling domestic equities since October 2021.