FPIs withdraw $3 billion between July-September; highest in 11 quarters

Despite the 3 per cent gain in September 2019, the FPI sell-off during the quarter has seen the benchmark indices register negative returns in Q3CY19

Overseas investors have pulled out over Rs 20,000 crore ($3 billion) from Indian equities during the third quarter of the calendar year 2019 (Q3CY19), the steepest quarterly outflow since the October –December 2016 quarter, when they had pulled out Rs 31,222 crore ($4.6 billion) from the equity market.

Foreign portfolio investors (FPIs) have sold equity shares net amounting of Rs 21,592 crore ($3.09 billion) between July and September 26, according to the latest available depository data. However, the volume of outflow slowed down after the government announced a reduction in corporation tax rate. This is in contrast as compared to