Foreign portfolio investors (FPIs) have pulled out Rs 18,856 crore from Indian markets so far in the month of February. FPI outflows have increased amid geopolitical tensions and the possibility of a hike in interest rates by the US central bank. According to depository data, during February 1-18, FPIs have withdrawn Rs 15,342 crore from equities and Rs 3,629 crore from the debt or bond market. During this time he has invested Rs 115 crore in hybrid mediums. In this way his net withdrawal has been Rs 18,856 crore. This is the fifth consecutive month that foreign funds have withdrawn from the Indian markets.
Himanshu Srivastava, Associate Director-Manager Research, Morningstar India said, “FPIs have been exiting Indian stocks in recent times amid geopolitical tensions and the possibility of a hike in interest rates by the Federal Reserve. Their selling has also intensified after the US central bank indicated a hike in interest rates.
Shrikant Chauhan, Head of Equity Research (Retail), Kotak Securities said rising tensions between the US and Russia over Ukraine have turned investors towards safer investment options like bonds and gold. He said that in the last one year, FPIs have pulled out about $ 8 billion from Indian equities. This is the highest figure since 2009.