Mumbai: Foreign Portfolio Investors (FPIs) pulled out around Rs 6000 crore from the Indian markets so far this month. FPIs withdrew Rs 5,992 crore from equities till October 21. In terms of sectors, FPIs have been sellers in financials, FMCG and IT in October. In addition to equities, foreign investors have pulled out Rs 1,950 crore from the debt market during the period. With this, the total outflow by has reached Rs 1.75 lakh crore so far in 2022.
As per the market experts, the strengthening of the US dollar against the Indian rupee is the main cause of this. Market experts revealed that the foreign fund outflow may remain volatile in the coming months due to ongoing geopolitical risk, elevated inflation and expectation of rising treasury yields.
FPIs pulled out Rs 7,600 crore in September. Prior to this, FPIs made a net investment of Rs 51,200 crore in August and nearly Rs 5,000 crore in July. Before July, foreign investors were net sellers in Indian equities for 9 months in a row which started in October last year.