Foreign investors pull out ₹2,881 crore in just 2 trading sessions in August | Mint
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Business News/ Markets / Stock Markets/  Foreign investors pull out 2,881 crore in just 2 trading sessions in August
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Foreign investors pull out ₹2,881 crore in just 2 trading sessions in August

FPIs were net buyers in the Indian capital markets in the first half of 2019, barring January. However, the trend reversed in July after the announcement of higher tax on FPIs
  • Prior to this, FPIs withdrew a net ₹2,985.88 crore from the Indian capital markets (both equity and debt) during 1-31 July
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    New Delhi: Continuing their selling spree, foreign investors have withdrawn a net amount of 2,881 crore from the Indian capital markets in the first two sessions of August on account of domestic as well as global headwinds.

    According to latest depositories data, foreign portfolio investors (FPIs) pulled out a net sum of 2,632.58 crore from equities and 248.52 crore from the debt segment during 1-2 August, taking the cumulative net outflow to 2,881.10 crore.

    Prior to this, FPIs withdrew a net 2,985.88 crore from the Indian capital markets (both equity and debt) during 1-31 July.

    "FPIs withdrew more than they invested as the US-China trade war has started brewing again which is not helping investors' sentiments," said Harsh Jain, COO at Groww.

    Further, "the announcement of rate cuts by Fed in the US has evoked confused reactions and added to the uncertainty," he added.

    FPIs were net buyers in the Indian capital markets in the first half of 2019, barring January. They infused a net 10,384.54 crore in June, 9,031.15 crore in May, 16,093 crore in April, 45,981 crore in March and 11,182 crore in February.

    However, the trend reversed in July after the announcement of higher tax on FPIs registered as trusts and association of persons in the Union Budget for 2019-20, experts said.

    The sentiments have also been impacted by slowdown in the economy, weak quarterly earnings and sub-par monsoon, among other factors, they added.

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    Published: 04 Aug 2019, 11:18 AM IST
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