FPIs pull out Rs 52,704cr, D-St to take cue from war

NEW DELHI: Foreign investors withdrew Rs 52,704 crore (around $5.7 billion) from domestic equities in the first fortnight of March, amid escalating tensions in West Asia, the depreciation of the rupee, and concerns over the impact of high crude oil prices on India’s growth and corporate earnings. The latest selloff comes after foreign portfolio investors (FPIs) infused Rs 22,615 crore into Indian equities in Feb, the highest monthly inflow in 17 months.

Prior to that, FPIs were net sellers for three consecutive months, withdrawing Rs 35,962 crore in Jan, Rs 22,611 crore in Dec and Rs 3,765 crore in Nov, according to depository data.

So far in March (until March 13), FPIs have sold equities worth about Rs 52,704 crore in the cash market and remained net sellers on all trading days during the month. Market experts attributed the pullout mainly to rising geopolitical tensions in West Asia.

Action-packed week
Meanwhile, developments surrounding the ongoing conflict in the Gulf and crude oil price movement will be the major factors driving trends in the equity market this week, analysts said.

Besides global trends, the US Fed interest rate decision and inflation data would also influence trading in markets, they added. “This week is packed with several important developments and data releases, both domestically and globally. Geopolitical developments will remain the key factor,” Ajit Mishra of of Religare Broking said.

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