In 4 days, FPIs pull out over ` 9,300cr

New Delhi, Oct. 7: Foreign investors have pulled out over ` 9,300 crore from the Indian capital markets in the last four trading sessions on unabated fall in rupee and rise in crude oil price.

The latest withdrawal comes following a net outflow of over ` 21,000 crore from the capital markets ( both equity and debt) last month. Prior to that, they had put in a net amount of ` 7,400 crore in JulyAugust.

According to the latest depository data, FPIs withdrew a net sum of ` 7,094 crore from equities during October 1- 5, and ` 2,261 crore from the debt market, taking the total to ` 9,355 crore.

FPIs have been net sellers almost throughout this calendar year except a couple of months.

However, the swiftness of the exit in October thus far has shaken the market, experts said.

“Rise in oil prices and US treasury yields and a tightening of global dollar liquidity are the key reasons for the FPI selling as they have induced high volatility in markets. One must however remember that this is a global phenomena across emerging markets and not limited to India alone. Of course, the impact of rise in oil prices is higher for India as it imports most of its oil requirements. The matter was further exacerbated by the IL& FS default and the rout in NBFC debt papers,” said Alok Agarwala, Senior VP at Bajaj Capital.