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FPIs pull out Rs 2415 crore from domestic capital markets in January so far

Additionally, FPIs have the Budget announcements in their sights

Press Trust of India  |  New Delhi 

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Adopting a cautious approach amid the US-Iran tensions, (FPI) have pulled out a net sum of Rs 2,415 crore from the Indian capital in January so far.

As per latest depositories data, invested a net amount of Rs 777 crore in equities and pulled out Rs 3,192.7 crore from the debt segment between January 1-10. This translates into a cumulative net outflow of Rs 2,415.7 crore.

Overseas investors have turned net sellers in January after remaining buyers for four consecutive months since September 2019.

"Cautiousness among foreign investors was apparent as they closely watched the developments on the global front before investing in the Indian equity Geopolitical turmoil triggered by increased tension between US and Iran played a key role in the way equity behaved globally," said Himanshu Srivastava, senior analyst manager research at Morningstar Investment Adviser India.

However, both the US and Iran have shown their intentions to de-escalate military tensions. This may result in the rebuilding of risk-on sentiment which may be positive for foreign flows into Indian equity markets going ahead, he added.

Additionally, have the Budget announcements in their sights.

"We can expect the government to make announcements to boost the economy, including infrastructure spending. into India will pick up in a bigger way following budgetary announcements aimed at improving the economy," said Harsh Jain, co-founder and COO at Groww.

First Published: Sun, January 12 2020. 10:25 IST