Foreign portfolio investors (FPIs) pulled out a whopping Rs 28,243 crore from Indian equities in January as US Fed signalled interest rate hike. As per the depositories data, FPIs took out Rs 28,243 crore from equities between January 3-28.
During the same period, they pumped in Rs 2,210 crore into debt segment and Rs 1,696 crore into hybrid instruments. The total net outflow stood at Rs 24,337 crore. The total net outflow stood at Rs 24,337 crore.
With the latest pull out of funds from Indian markets, FPIs have become net sellers for fourth consecutive month. "With US Fed signalling that it will start hiking interest rates soon and shrink its bond holdings, FPIs went on a selling spree in the Indian equity markets," said Himanshu Srivastava, Associate Director - Manager Research, Morningstar India.
This is indicative of an end to the ultra-loose monetary policy regime. "FPIs have been booking profits in IT where they have been sitting on big profits after the huge appreciation in the last two years," VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted.