Foreign Portfolio Investors (FPIs) have offloaded Indian equities worth Rs 20,974 crore in September so far. According to the latest depository data, out of the total net outflows, Rs 23,676 crore were withdrawn through sales on stock exchanges, as geopolitical uncertainty, elevated US bond yields and crude oil prices weighed on investor’s risk appetite.
The US Federal Reserve’s 25 basis points rate hike further heightened uncertainty around global liquidity conditions. However, the trend of FPI investment through the primary market has continued in this month, with FPIs investing over Rs 2,700 crore in the primary market in September so far.
Meanwhile, Foreign investors also extended their selling to the debt market during the period under review. In September so far, outflows from the debt securities through the Fully Accessible Route (FAR) stood at Rs 10, 296 crore. FPIs have withdrawn Rs 1,817 crore through the Voluntary Retention Route (VRR) and Rs 1,068 crore through General Limit route.
