June 16, 2024 13:56 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
After his 'Lord Ram' taunt on BJP creates uproar, RSS leader makes a U-turn | NDA govt formed by mistake, can fall anytime: Congress chief Mallikarjun Kharge's claim | PM Modi returns to India after 'successful completion of G7 Outreach Summit' in Italy | Delhi LG approves prosecution of Arundhati Roy, Sheikh Showkat Hussain in 2010 provocative speech case | BS Yediyurappa, accused of harassing minor, can't be arrested till next hearing: Karnataka HC
FPIs pull out net outflow of Rs 22,047 cr from equities in May amid election uncertainty
Representational image by Rupixen on Unsplash

FPIs pull out net outflow of Rs 22,047 cr from equities in May amid election uncertainty

| @indiablooms | 27 May 2024, 01:18 pm

Mumbai/IBNS: Foreign investors have taken out a massive Rs 22,000 crore from Indian equities so far in May, due to uncertainty surrounding the results of the Lok Sabha polls and outperformance of Chinese markets, reports said.

According to reports, the development came following a net outflow of over Rs 8,700 crore in the entire April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields, and before that, Foreign Portfolio Investors (FPIs) made a net investment of Rs 35,098 crore and Rs 1,539 crore in March and February respectively.

FPIs are likely to buy in India as clarity emerges on the election front, since they cannot afford to miss the post-election results rally.

Foreign Portfolio Investors (FPIs) witnessed a net outflow of Rs 22,047 crore from equities this month, till May 24, according to data with depositories.

Experts said this heavy selling was triggered by the massive outperformance of Chinese stocks and election-related jitters.

The Hang Seng index, dominated by Chinese stocks surged 7.66 percent during the last month.

FPIs reportedly invest through the Hong Kong market since there are restrictions on investing through the Shanghai market.

According to experts, with the uncertainty surrounding the outcome of on-going general polls in the country, foreign investors at this point are wary of entering the Indian equity markets before the announcement of election results.

On the flip side, FPIs invested Rs 2,009 crore in the debt market during the period under review.

Before this outflow, foreign investors put in Rs 13,602 crore in March, Rs 22,419 crore in February, Rs 19,836 crore in January, according to reports.

Experts said this inflow was influenced by the upcoming inclusion of Indian government bonds in the JP Morgan Index.

Overall, FPIs have withdrawn a net amount of Rs 19,824 crore in equities in 2024 so far, and invested Rs 46,917 crore in debt market, as per reports.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.