Mumbai: The Foreign Portfolio Investors (FPI) withdrew Rs 39,137 crore from the Indian Equity market during May 2-27. FPIs withdrew a net amount of about Rs 6,000 crore from the debt market during the period under review.
As per market experts, the expectation over an aggressive rate hikes by the US Federal Reserve and the strengthening of the US dollar are the main reason for the sustained foreign fund outflow. They also predicted that the rising crude oil prices, inflation and tight monetary policy will increase the pace of foreign fund outflows.
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So far in 2022, foreign portfolio investors pull out around Rs 1.66 lakh crore. FPIs remained net sellers for the seven months to April 2022, withdrawing a massive Rs 1.65 lakh crore from equities. FPIs turned net investors in the first week of April due to a correction in the markets and invested Rs 7,707 crore in equities.
Apart from India, other emerging markets, including Taiwan, South Korea, Indonesia and the Philippines, too have witnessed outflows in the month of May till date.
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