You are here: Home » Markets » News
Business Standard

FPIs go on selling spree post super-rich tax, withdraw Rs 7,712 cr in July

FPIs had been net investors in the equity segment in the previous five months

Topics
FPIs | budget 2019

Press Trust of India  |  New Delhi 

The stimulus package announced by China and the optimism around the US-China trade agreement has further bolstered FPI sentiment towards emerging markets (EMs) as a whole

Foreign portfolio investors pulled out around Rs 7,712 crore from Indian equities in this month so far following the 'super-rich' tax announced in the budget for 2019-20, according to analysts.

had been net investors in the equity segment in the previous five months.

According to the latest data available with depositories, a net sum of Rs 7,712.12 crore has been pulled out from equities during July 1-19. However, foreign portfolio investors (FPI) pumped in Rs 9,371.12 crore in the debt segment during the period.

This has translated into a net investment of around Rs 1,659 crore in July so far into the capital (both equity and debt).

Commenting on the massive withdrawal from equities, Himanshu Srivastava, senior analyst manager research at Morningstar said, "have been on a selling spree ever since government proposed 'super-rich' tax in its budget and with no respite in sight from the government, the quantum of net outflows shot up."

Besides, other factors which are keeping foreign investors at bay from investing in Indian are a tepid earning season, slower pace of GDP growth, sub-par monsoon and lowering of India's growth forecast from Asian Development Bank, he added.

He further added that from an investment perspective, the current scenario is clearly "unfavourable" for to invest in Indian equities.

Considering the global factors, Harsh Jain, COO at Groww said: "equity saw a net withdrawal this week as international tensions like US-Iran kept investors sentiments jittery while within India, quarterly results of a few companies also failed to meet the street's expectations.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, July 21 2019. 10:25 IST
RECOMMENDED FOR YOU
.