BackFPIs turn net sellers in Indian capital markets in December amid weak macro data
Foreign investors pulled out a net sum of ₹1,668.8 crore from equities. FPIs, however, invested ₹1,424.6 crore on a net basis in the debt segment, resulting in a total net outflow of ₹244.2 crore in December so far
PremiumNEW DELHI : Reversing their buying trend, foreign portfolio investors (FPI) turned net sellers in December with a net outflow of ₹244 crore from the capital markets amid subdued economic data.
According to the depositories data, foreign investors pulled out a net sum of ₹1,668.8 crore from equities. FPIs, however, invested ₹1,424.6 crore on a net basis in the debt segment, resulting in a total net outflow of ₹244.2 crore in December so far.
FPIs had been net buyers for two months to November. They invested ₹16,037.6 crore in October and ₹22,871.8 crore in November on a net basis.
"FPIs adopted a cautious approach while investing in Indian equities, on the back of subdued economic indicators. It has not been a good year for the Indian economy so far and the recently released GDP number which continued the southward march for the seventh quarter in a row falling to 4.5% reaffirmed the slowdown in the Indian economy," said Himanshu Srivastava, senior analyst manager research, Morningstar Investment Adviser India.
FPIs would continue to be watchful of the domestic environment and tread cautiously, he added.
Echoing the views, Harsh Jain, co-founder and COO Groww said, "Trump threatening to continue the US-China trade war well past 2020 is definitely making global investors cautious. The repo rate was not reduced, unlike FPIs' expectations. Plus the latest GDP numbers are also responsible for bearish behaviour of FPIs."
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