FPIs Withdraw 
3,500 Cr. From Equities in a Fortnight
BANGALORE: In the last 15 days, overseas investors have pulled out close to 
3,500 crore from the Indian equity markets on concerns of renewed worries over the health of Chinese economy and sharp fall in crude oil prices.
However, these investors continue to remain bullish on the Indian debt market and invested a net amount of 3,239 crore during the period.
According to data available with depositories, Foreign Portfolio Investors (FPIs) infused a gross amount of 36,368 crore into equity markets in January 1-15, while they pulled out 39,852 crore during the same period, resulting in a net outflow of 3,483 crore (about $520 million).
Capital poured in by the FPIs is often referred to as ‘hot money’ because of its unpredictability, although they continue to remain among the most important drivers of Indian stock markets.
Market experts attributed the outflow from the stock markets to several negative factors such as concerns over China’s growth, crude falling below $31 to 12-year lows and weak IIP data.
The outlook for the Chinese economy and the ongoing collapse in oil prices have triggered FPIs to pull-out money from the stock market.
A contraction in industrial production in November also dampened investors’ sentiments.
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