Mumbai: Foreign Portfolio Investors (FPIs) pulled out Rs 3,776 crore from the Indian equities this month (till February 16). This came following a net withdrawal of Rs 25,743 crore in January. With this, the total outflow for this year has reached Rs 29,519 crore.
‘The spike in US bond yields triggered by the higher-than-expected consumer price inflation led to sustained selling by FPIs,’ V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.
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Meanwhile, FPIs invested Rs 16,560 crore in debt markets during the period under review. They invested Rs 19,836 crore in the debt markets in January, Rs 18,302 crore in December, Rs 14,860 crore in November, and Rs 6,381 crore in October.
Overall, the total FPI flows for 2023 stood at Rs 1.71 lakh crore in equities and Rs 68,663 crore in the debt markets. Together, they infused Rs 2.4 lakh crore into the capital market.
Indian equities witnessed a net outflow of Rs 1.21 lakh crore by FPIs in 2022. Before the outflow, FPIs invested money in the last three years. FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 lakh crore in 2020, and Rs 1.01 lakh crore in 2019. FPIs took out funds worth Rs 15,910 crore in 2022, Rs 10,359 crore in 2021, and Rs 1.05 lakh crore in 2020 from debt markets.
Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, Domestic Institutional Investors (DII) are those who invest in the country they are living in. Both types of investors can impact the economy’s net investment flows.
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