FPIs take out Rs 5,500 cr from equity markets

Latest sell-off comes after FPIs withdrew Rs 7,074 cr from equities last month

Continuing their selling spree, foreign investors have pulled out nearly Rs 5,500 crore from stock markets since the beginning of the month on worries of an interest rate hike by the US Federal Reserve.

The latest sell-off comes after Foreign Portfolio Investors (FPIs) withdrew Rs 7,074 crore from the equities last month.

Prior to that, overseas investors had infused Rs 6,650 crore in the stock markets in October.

As per the data compiled by the depositories, net outflow in equities stood at Rs 5,487 crore during December 1-11.

Besides, foreign funds withdrew a net amount of Rs 368 crore from debt markets during the same period.

In prepared remarks, US Fed chair Janet Yellen had earlier this month said that she is "looking forward" to the first interest rate hike in nearly a decade, sparking worries that emerging markets may see capital flight.

"Investors are sensing that the era of near-zero interest rates is coming to an end after the Fed chairperson expressed confidence about the US economy," Geojit BNP Paribas Financial Services Ltd Head-Fundamental Research Vinod Nair said.

In addition, investors grew increasingly worried over a possible delay in the passage of the key GST Bill.

"Logjam in Parliament is creating a hiccup in the Indian market since GST is expected to be passed in the Winter Session," an analyst said.

So far this year, overseas investors have made a net investment of Rs 15,136 crore in equities and Rs 50,976 crore in debt markets.