Foreign Institutional Investors, FIIs have pulled out nearly 5,300 crore rupees from the Indian debt market since the beginning of the month. In comparison, equity market has witnessed modest inflow of 1,150 crore rupees during the period. As per latest data, foreign investors were gross buyer of debt securities worth 9,175 crore rupees till August 14, and sellers to the tune of 14,448 crore rupees, a net outflow of 5,273 crore rupees. The huge outflow comes after FIIs and Foreign Portfolio Investors, FPIs poured in around 80,000 crore rupees in the first seven months January-July of 2014. Market experts attributed the huge outflow to several factors such as geo-political unrest in Ukraine, Iraq and Gaza along with global economic issues like the defaults in Argentina and Portugal and the recent Statutory Liquidity Ratio, SLR cut by the Reserve Bank of India. However, they maintained that the long-term prospects of staying invested in India are still positive. Foreign investors have pumped in a staggering 80,539 crore rupees (13.4 billion US Dollars) into the Indian bond market so far this year, higher than investments of 74,068 crore rupees (12.33 billion US Dollars) into equities during the period. From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by market regulator SEBI to create a new investor category called FPIs.
News On AIR | August 17, 2014 1:23 PM
FIIs pull out Rs 5300 crore from debt market in August