FPIs take out Rs 9,500 cr from equities in New Year

Global growth worries and sharp dip in oil prices trigger the move

Overseas investors have pulled out more than Rs 9,500 crore from the Indian stock markets since the beginning of the month on global growth worries and sharp dip in oil prices.
However, these investors continue to remain bullish on the Indian debt market and invested a net amount of Rs 2,353 crore during the period.
According to data available with depositories, Foreign Portfolio Investors (FPIs) infused a gross amount of Rs 53,296 crore into equity markets between January 1-22, while they pulled out Rs 63,259 crore during the same period, resulting in a net outflow of Rs 9,963 crore (USD 1.47 billion).

Capital poured in by the FPIs is often referred to as 'hot money' because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.
Market experts attributed the outflow from the stock markets to several negative factors such as crude oil slipping below USD 28 per barrel.
In addition, muted earnings and widening trade deficit to USD 11.6 billion in December as against USD 9.1 billion in the year-ago period, further battered the market mood.
The investor sentiment is also rattled by depreciating rupee and concerns over health of the Chinese economy, said Vinod Nair, Head of Fundamental Research of Geojit BNP Paribas Financial.

In 2015, FPIs had infused a net amount of Rs 17,806 crore in equities and Rs 45,856 crore in bond markets.