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FPIs turn net sellers in January; withdraw Rs 3,600 cr in just 9 sessions

This comes following a cumulative net inflow of Rs 8,584 crore in the equity markets by Foreign Portfolio Investors (FPIs) during November and December

Press Trust of India  |  New Delhi 

FPI
FPIs

Foreign investors have pulled out more than Rs 3,600 crore from the Indian equity in the last nine trading sessions, adopting a cautious stance towards the country.

This comes following a cumulative net inflow of Rs 8,584 crore in the equity by Foreign Portfolio Investors (FPIs) during November and December.

According to data available with the depositories, FPIs withdrew a 3,677 crore from equities during January 1-12.

However, they pumped in a net sum of Rs 1,872 crore in the debt during the period under review.

"While it may not be a good start for the year, it is too early to draw any conclusion. However, at best what it indicates is that FPIs are continuing with their cautious/wait and watch stance towards India," said Himanshu Srivastava, Senior Analyst Manager Research,

"Going ahead, the focus would be on the budget, country's progress on the economic growth front as well as Other factors such as movement in crude prices and currency, which would have a bearing on the country's macro-environment; and worries over global trade war will continue to guide the direction of FPI flows," he added.

Harsh Jain, at Groww, an online MF investment platform, said 2019 is likely to see a lot of volatility because of rate hikes and dollar instability, but the Indian markets may not be as volatile as developed ones despite short-term political uncertainty.

"offers better investment opportunities due to consistent growth, supportive global factors and attract valuations. We should expect positive inflow in the coming months," he added.

First Published: Sun, January 13 2019. 10:20 IST
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