Mumbai: Foreign portfolio investors (FPIs) withdrew Rs 50,203 crore worth of equities from the Indian equity markets in June. This was revealed by the National Securities Depository data. This is the highest monthly outflow in this year.
The FPIs remained net sellers in the market for the last nine months in a row. As per market experts, the rising current account deficit on account of depreciation of the rupee, and rising dollar and bond yields in the US, high inflation and including tightening of monetary policy are the main reason for the outflow.
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FPIs have pulled out more than Rs 217,619 crore this year from the Indian markets. During the same period, Sensex and Nifty declined over 10%.
In May, the foreign funds’ outflow was at Rs 39,993 crore and in April it was at Rs 17,144 crore. In March FPIs withdrew Rs 41,123 crore. The foreign fund outflow was at Rs 35,592 crore and Rs 33,303 crore in February and January this year.
So far in the first quarter of this fiscal year (April 2022 – up to June 24, 2022), FPIs outflow is at Rs 1,02,978 crore from the equities. In January to March 2022 period, the outflow from equities was at Rs1,10,018 crore.
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