Foreign funds pull out Rs8,319-cr from markets in August
19 Aug 2019
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Foreign portfolio investors (FPIs) remained net sellers so far in August, pulling out Rs8,319 crore from secondary markets in nine trading sessions, according to depository data.
FPIs sold equities worth Rs10,416.25 crore on a net basis between 1 and 16 August, even as they invested Rs2,096.38 crore in the debt securities during the period.
The continuing selling spree by foreign funds comes amid uncertainty over the proposed tax on `super rich’, which would include FPI investments, as also global trade worries.
It may be noted that the sell off comes at a time when the economy has slowed. A weak earning season made matters worse.
FPIs had in July withdrawn a net Rs2,985.88 crore from the markets (both equity and debt).
Stocks from the banking and other financial services, which collectively lost Rs6,698 crore in overseas investment in July, were at the receiving end of FPI sell off.
Foreign investors had previously remained net buyers in the sector, though inflows had steadily declined after peaking in March.
Other sectors that witnessed major selling included software and services, automobiles and auto components, oil and gas and capital goods.
