Mumbai: Overseas investors have been massively pulling out money from the Indian capital market so far in 2018-19. This a trend reversal in the flow of foreign portfolio investments to the Indian market, which has witnessed high inflows in the previous two fiscal years. The FPIs have pulled out $13.7 billion from the Indian market as on October 9, 2018, a recent report by CARE Ratings show. On Friday, Foreign investors net sold shares worth Rs 1,322.13 crore. Domestic investors made purchases worth a net of Rs 1,287 crore. “FPI outflows have been one of the factors attributed to the depreciation in the rupee in recent times.
The depreciation in the rupee has been both a cause and effect of foreign fund outflows,” the report added. The report also highlighted that the net FPI outflows since August were $4.9 billion, when the rupee depreciated around 7 percent during this period. But, India witnessed higher net outflows of $ 9.1 billion during April-June, when the rupee depreciated by only 3 percent.