The outflow comes following a net withdrawal of Rs 28,852 crore by Foreign Portfolio Investors (FPIs) in January. This was also the worst outflow in the last seven months, data with the depositories showed
This selling is despite the Sensex and Nifty trading near record highs. Over the last 15 sessions, the benchmark indices jumped over 6 percent
However, inclusion of Indian sovereign bonds in global bond indices, if and when that happens, may funnel flows into domestic debt.
This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.
Most individual categories that invest in fixed-income securities or debt funds saw outflows. However, overnight category managed to see positive inflow.
With funds outflow of USD 744 million, listed foreign funds investing in India continued to be sellers in December last year, says a report.
Foreign investors have pulled out over Rs 3,800 crore from the country's equity markets so far this month over concerns regarding "lower prospects" of economic growth as compared to other emerging markets.
Mutual fund managers attributed the inflow in equity funds to the matured investor behaviour who are staying put and using volatility to invest additional money in to these schemes
In nine out of the 11 months till November, equity schemes saw more money coming in than going out. The not so good news—investors were not as enthusiastic about equity schemes this year as they were in 2015. Inflows of Rs 44,772 crore, were almost half of the Rs 90,603 crore received in 2015
Gold exchange-traded funds (ETFs) saw an outflow of Rs 69 crore in November, taking the total to Rs 588 crore in the first eight months of the current fiscal, mainly due to profit-booking.
The trading in Gold ETF segment has been tepid in last three financial years. The funds witnessed an outflow of Rs 903 crore, Rs 1,475 crore and Rs 2,293 crore in 2015-16, 2014-15 and 2013-14, respectively.
India witnessed an outflow of more than USD 460 million from listed foreign funds in May, taking the total to USD 2 billion this year
This comes on top of net outflow of about Rs 46,750 crore from mutual fund products in August. According to data from the Association of Mutual Funds in India (Amfi), investors withdrew a net Rs 77,142 crore in MF schemes last month.
The move follows an inflow of about Rs 1.2 lakh crore into mutual fund products in the preceding month.
Rishav Dev, Equity Strategist at Quant Capital - Institutional Equities, sees some outflow from debt funds due to rupee depreciation.
India has replaced Malaysia as the fourth largest exporter of black money after China, Russia and Mexico for the 10-year period from 2003-2012.
Even as assets have hit a record high, a complete lack of interest in equity funds (the higher margin products), poor performance of the stock market and a depleting distributor force means the Indian mutual fund industry has much to worry about.
Market experts attributed the sell-off by FIIs to global events like fears of slowdown in China and further scaling down of the economic stimulus programme for the American economy by the US Federal Reserve.
In an interview to CNBC-TV18, Saurabh Mukherjea of Ambit Capital says this negativity, however, isn't India specific.
The connection of the rupee with Asian currencies is coming off a bit. So, chances are that the rupee will start where it ended and then see a little more weakness, says Latha Venkatesh, CNBC-TV18.
Domestic institutions continue to book profits even as foreign funds have been consistent buyers since the beginning of this calendar. It is not clear what is prompting the local players to cash out: unsustainable valuations or redemption pressures?
Adrian Mowat of JPMorgan spits out the painful truth about the situation in Europe on CNBC-TV18. He says that even though the German Chancellor and the French President are up for an immediate resolution of the debt crisis thorough the EFSF, getting agreement from 17 different governments seems difficult.
Big Indian outflows of illicit funds have come into the spotlight with the country's top court criticising Prime Minister Manmohan Singh's failure to crack down on flows to Swiss banks and other tax havens.