New Delhi: Foreign investors have pulled out over Rs 17,000 crore from debt markets in this month so far mainly due to rally in government securities and decreasing spread in interest rates between the US and India. However, FPIs pumped in a net Rs 138 crore in equity markets in the month so far.
The latest outflows come following net withdrawal of more than Rs 27,000 crore from debt markets and another Rs 22,500 crore from equities in the preceding two months (October-November).
“In the debt market, FPIs have been net sellers in seven out of 11 months thus far. The rally in the Indian government securities and the decreasing spread between US interest rates and India could be a reason; FPIs book profits in the gilt rally in India,” FundsIndia.com head of mutual fund research Vidya Bala said.
Net withdrawal by foreign investors from debt markets stood at Rs 17,392 crore in this month, while they poured in Rs 138 crore during the period under review, according to data with depositories.
