FPIs pull out Rs 8,319 crore in August

NEW DELHI: Foreign investors pulled out Rs 8,319 crore on a net basis from capital markets in the first half of August, continuing their selling spree in the Indian market amid uncertainty over FPI tax and global trade worries. According to the data, foreign portfolio investors (FPIs) sold equities worth Rs 10,416.25 crore on a net basis during August 1-16 period.

FPIs, however, invested a net Rs 2,096.38 crore in the debt securities during the period. So far in August, FPIs have been net sellers for nine out of 10 trading sessions, indicating "extreme negative sentiment", Himanshu Srivastava, senior analyst manager research, Morningstar said. In July, FPIs had withdrawn a net sum of Rs 2,985.88 crore from the Indian capital markets (both equity and debt). "Prevailing uncertainty over the higher tax on FPI has negatively impacted foreign investors. They have been exiting Indian equities ever since the higher surcharge, or ‘super rich', tax was introduced in the budget announced on July 5th," Srivastava added.

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