NEW DELHI: Overseas investors have pulled out more than 14,000 crore from the Indian capital markets in May, making it the first month of net outflows in nearly two years.

The debt market has seen steeper outflows than equities.

The net outflow by Foreign Portfolio Investors (FPIs) from equities stood at 5,768 crore in May, while the same for the debt markets was at 8,504 crore taking the total to 14,272 crore ($2.23 billion), according to the latest data from depositories.

This was the first instance of monthly net outflow from the capital markets (debt and equity) since August 2013, when FPIs withdrew 15,695 crore.

The huge sell off comes amid worries over imposition of 20 pct minimum alternate tax on capital gains by overseas investors till April 1, 2015.

Experts also attributed outflows to global sell off in bonds, rise in global crude oil prices and uncertainty on rate cut by the Reserve Bank.

However, some analysts are bullish on FPI inflows in the Indian capital markets in the long-term.

Month-on-month analysis showed the fund inflows are on a decline as FPI investments in January this year stood at 33,688 crore, before dropping to 24,564 crore in February, 20,723 crore in March and 15,266 crore in April and finally net outlfows in May.

Since January 2015, overseas investors have invested a net amount of around 80,000 crore in the capital markets.

Also Read: 63 Pct Indians Polled Have Dedicate Fund For Vacation

Market Outlook: RBI Policy To Set The Tone For Market This Week