FPIs pulled out Rs.2,249 cr from Indian equities in July so far

New Delhi: After a month of net inflows, foreign portfolio investors (FPIs) pulled out Rs 2,249 crore from the Indian equities segment in the first seven trading sessions of July.

This could be largely attributed to profit booking by FPIs with markets trading near all-time highs and investors choosing to stay on the sidelines, said Morningstar India Associate Director (Manager Research) Himanshu Srivastava.

VK Vijayakumar, chief investment strategist at Geojit Financial Services, said it was important to appreciate the fact they are not



selling big.

 “This is because even though valuations are stretched, there are no signs of a major crash in markets. The sharp dip in the US 10-year bond yield to around 1.3 per cent has again tilted the market in favour of equity,” he said.

The steady rise in the dollar index has become a headwind for capital flows to emerging markets, he further added.

Conversely, the debt segment saw a net inflow of Rs 2,088 crore between July 1 and July 10, as per the depositories data.