FPIs cautious in pockets, offload Indian equities worth Rs 5,689 cr in July so far

Overseas investors pulled out over Rs 5,600 crore from Indian equities in July so far as they continue to adopt a cautious stance in wake of several domestic and global factors. 

Foreign portfolio investors (FPIs) pulled out Rs 5,689.23 crore from equities during July 1-23, according to depositories data. 

They pumped in Rs 3,190.76 crore in the debt segment during the period under review. Net withdrawal during the said period stood at Rs 2,498.47 crore. Increasing valuations, soaring oil prices and firmness in the US dollar would have made overseas investors wary of the near-term risks, which would have impelled them to stay on the sidelines, Himanshu Srivastava, associate director - manager research, Morningstar India told PTI.

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Harsh Jain, co-founder and COO at Groww, said that in addition, with Sensex and Nifty hovering around the all-time high mark, foreign investors are being cautious in investing money.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said, "They have been continuous sellers in the cash market for the last six trading days."

With respect to other emerging markets, Arun Agarwal, deputy vice president, fundamental research at Kotak Securities, said that all key emerging markets and Asian markets have seen FPI outflows this month to date except Indonesia.

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"FPI flows to India is expected to remain vulnerable to US Fed monetary policy and rising crude oil prices. Additionally, investors should note that the wide valuation gap between large-caps and small and midcaps have been filled," said Shrikant Chouhan, executive vice president, equity technical research at Kotak Securities.

Srivastava added that India remains an attractive investment destination from the long-term perspective. As the macro environment improves and domestic economy starts treading on the recovery path, FPI flows can be expected to rebound.

(With inputs from PTI.)