New Delhi: Foreign investors pulled out a massive Rs 2,254 crore from the Indian stock market in the last fortnight on fears of a global growth slowdown.
However, the debt market saw an inflow of Rs 962 crore during the period under review.
According to data available with depositories, foreign portfolio investors (FPIs) took out a net Rs 2,254 crore from equities during February 1-12 while they pumped in a net Rs 962 crore in the debt market during the same period, leading to a net outflow of Rs 1,292 crore (USD 188 million).
Prior to that, FPIs had pulled out a net Rs 13,381 crore from equities while they infused Rs 3,274 crore in debt in January.
Capital inflow by FPIs is often referred to as hot money because of its unpredictability though it continues to remain one of the key drivers of the stock market.
"The continuous fall in oil prices and the slowdown in China are impacting global markets as well as India," GeojitBNP Paribas Head, Fundamental Research, Vinod Nair said.
Further, weak quarterly earnings of major corporates, coupled with gloomy global growth prospects, spooked investors, Hem Securities Director Gaurav Jain said.
Meanwhile, the benchmark Sensex plunged 1,884.57 points, or 7.57 per cent, during the period under review.In 2015, FPIs had brought in a net Rs 17,806 crore inequities and Rs 45,856 crore in bond markets.
