INSUBCONTINENT EXCLUSIVE:
New Delhi: Foreign investors have pulled out more than Rs 3,600 crore from Indian equity markets in last nine trading sessions, adopting a
cautious stance towards country.
This comes following a cumulative net inflow of Rs 8,584 crore in equity markets by Foreign Portfolio
Investors (FPIs) during November and December.
According to data available with depositories, FPIs withdrew a net amount of Rs 3,677 crore
from equities during January 1-12.
However, they pumped in a net sum of Rs 1,872 crore in debt markets during period under review.
"While it
may not be a good start for year, its too early to draw any conclusion
However, at best what it indicates is that FPIs are continuing with their cautious/wait and watch stance towards India," said Himanshu
Srivastava, Senior Analyst Manager Research, Morningstar Investment Adviser India.
"Going ahead, focus would be on budget, country's
progress on economic growth front as well as general elections
Other factors such as movement in crude prices and currency, which would have a bearing on country's macro-environment; and worries over
global trade war will continue to guide direction of FPI flows," he added.
Harsh Jain, COO at Groww, an online MF investment platform, said
2019 is likely to see a lot of volatility because of rate hikes and dollar instability, but Indian markets may not be as volatile as
developed ones despite short-term political uncertainty.
"India offers better investment opportunities due to consistent growth, supportive
global factors and attract valuations
We should expect positive inflow in coming months," he added.
