Covid-19, US yields, dollar to weigh on equity flows in the near term
According to the depositories data, a net Rs 3,510 crore was withdrawn from equities, while Rs 1,472 crore was pumped into debts by FPIs between September 1-11
FPIs remain positive on Indian markets; invest Rs 41,330 cr in Aug so far
While net FPI slows for the initial two months were positive, FPI selling was seen accelerating in the subsequent two months
Of the total 50 companies from the Nifty index, FPIs has reduced their holdings in 45 companies during the recently concluded quarter
Between April 1-24, foreign portfolio investors (FPI) pulled out a net sum of Rs 6,822 crore from equities and Rs 3,525 crore from the debt segment, depositories data showed
Global index provider was expected to hike the weight after Centre's decision to virtually increase investment limit for overseas investors in domestic firms
While a coordinated aggressive monetary easing from the central banks is most likely to offer some respite in the near-term, it is unlikely to improve the sentiments
Sensex fell 336 points, or 0.82 per cent, to end at 40,794; Nifty closed at 12,056, down by 95 points or 0.8 per cent
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
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As per latest depositories data, foreign portfolio investors pulled out a net amount of Rs 4,263.79 crore from equities but infused a net Rs 3,000.86 crore into the debt segment
In July, overseas investors had pulled out a net amount of Rs 2,985.88 crore from the capital markets
China is the world's second-largest market, after the US, in terms of market capitalisation
This comes following a collective net inflow of Rs 8,584 crore in the equity markets by FPIs during November and December 2017
This was the worst year for Indian capital markets in terms of overseas investment since 2002
FPIs never fully returned to the Indian equity markets after pulling out net assets worth Rs 610 bn during the quarter ended June 2018
In contrast, foreign portfolio investors have put in Rs 5.92 billion in equities during the period under review
The latest withdrawal is much higher than outflow of Rs 412 billion, witnessed in entire 2008, during global financial crisis
This is the steepest outflow from the capital market since November 2016, when FPIs had pulled out Rs 393.96 billion