Corporate

FPIs pull out $900 mn from Indian market on widening CAD in Sept quarter

Continuing their selling spree in the September quarter, foreign investors pulled out $900 million from the Indian equity market on widening current account deficit due to a surge in oil prices and depreciating rupee. This comes following a net outflow of equities worth $3.04 billion by foreign portfolio investors (FPIs) during the April-June quarter, according to Morningstar Investment Adviser India. On a month-on-month basis, FPIs were net buyers of equities worth $330 million in July and $260 million in August. However, they turned net sellers of $1.49 billion in September. Further, the scenario turned adverse towards the end of the quarter on account of widening current account deficit due to a surge in oil prices, depreciating rupee, concerns over the government’s ability to meet fiscal deficit targets, and lower-than-expected GST collection fanned uncertainty over the country’s macro outlook, the report noted.

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