FPIs pull out Rs.2,416 cr from Indian capital markets in January

Adopting a cautious approach amid the US-Iran tensions, foreign portfolio investors (FPI) have pulled out around sum of 2,416 crore rupees from the Indian capital markets in January so far. As per latest depositories data, FPIs invested a net amount of 777 crore rupees in equities and pulled out around 3,193 crore rupees from the debt segment between January 1-10. This translates into a cumulative net outflow of 2,416 crore



rupees. 

Overseas investors have turned net sellers in January after remaining buyers for four consecutive months since September 2019.

However, both the US and Iran have shown their intentions to de-escalate military tensions. This may result in the rebuilding of risk-on sentiment which may be positive for foreign flows into Indian equity markets going ahead.