NEW DELHI: Foreign investors have pulled out more than Rs 4,000 crore from Indian capital markets so far in January, highlighting their cautious stance towards country.This comes following a collective net inflow of over Rs 17,000 crore in capital markets -- both equity and debt -- by Foreign Portfolio Investors (FPIs) during November and December.Prior to that, they had pulled out a massive Rs 38,905 crore in October.According to data available with depositories, FPIs withdrew a net amount of Rs 3,987 crore from equities and a net sum of Rs 53 crore from debt market, taking total outflow to Rs 4,040 crore during January 1-18.Market experts believe that FPIs are continuing with their 'wait and watch' approach towards India.Going ahead, focus would be on budget, progress on economic growth front and general elections, they added.Other factors such as movement in crude prices and currency as well as US-China trade relations will also play a role in FPI flows, they 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 be able to weather storm."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.