New Delhi: Foreign portfolio investors (FPI) have pulled out Rs 476 crore on net basis so far from Indian markets in September, reflecting a cautious stance by participants amid fears of resurgence of coronavirus cases in Europe and other countries.
According to depositories data, FPIs have withdrawn a net Rs 4,016 crore from equities and invested a net sum of Rs 3,540 crore in debt instruments during September 1-25 — a net outflow of Rs 476 crore.
FPIs remained net buyers for three consecutive months — June-August. They had invested Rs 46,532 crore in August, Rs 3,301 crore in July and Rs 24,053 crore in June on net basis.
“The renewed fears of re-emergence and surge in coronavirus cases in Europe and other countries have raised concerns about the possibility of fresh lockdowns being imposed in infected regions, which would have prompted FPIs to adopt a cautious stance,” said Himanshu Srivastava, associate director – manager research, Morningstar India.
Moreover, the rising COVID-19 cases in India and the challenges faced by the Indian economy do not instill confidence either, he said.