Decline In FPIs By Rs 9,300 Crore In Last 4 Trading Sessions

News World India | 0
| October 7 , 2018 , 18:22 IST

As the Indian rupee continues to fall with the presence of hike in crude oil prices, Foreign Investors have pulled out over Rs 9,300 crore of investments from the Indian capital markets, media reported on Sunday.

According to reports, the investments have been pulled out in the last four trading sessions.

The foreign portfolio investors (FPIs) withdrew a net amount of Rs 7,094 crore from equities during October 1-5, and Rs 2,261 crore from the debt market.

Also Read: Hike In FPIs By Rs 3,127 Crore In Last Five Trading Sessions

Alok Agarwala a Senior Vice President and Head Investment Analytics at Bajaj Capital was quoted by PTI as saying, "Rise in oil prices and US treasury yields and a tightening of global dollar liquidity are the key reasons for the FPI selling as they have induced high volatility in currency, bond and equity markets."

“One must, however, remember that this is a global Phenomenon across emerging markets and not limited to India alone. Of course, the impact of rising in oil prices is higher for India as it imports most of its oil requirements. The matter was further exacerbated by the IL&FS default and the rout in NBFC debt papers,” he added.

Except for a couple of months, so far in 2018 FPIs have been net sellers throughout the year with pulled out over Rs 20,000 crore from equities and more than Rs 50,000 crore from the debt markets.