FPI net outflow at $3 bn in 2016, worst in 8 years

Foreign investors pulled out more than $3 billion of the so-called ‘hot money’ from the Indian capital markets in 2016, making it the worst period in last eight years in terms of foreign investments. Surprisingly, it is the debt instruments that have taken the biggest hit, after remaining a preferred investment avenue for foreign funds in recent years, while equities continued to attract net inflows but not enough to compensate the outflows from the bond market.