InvestorQ : Is it true that Foreign Investors have been pulling out money from India in July 2021?
Lavanya Subramanian made post

Is it true that Foreign Investors have been pulling out money from India in July 2021?

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Anamika Sodhani answered.
2 months ago
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In the first two weeks of July till 16th of the month, foreign portfolio investors has pulled out Rs.4,515 crore from equities. This is in contrast to the month of June when the FPIs had infused close to $2.35 billion into Indian equities. The caution of FPIs stemmed from the Nifty and Sensex being close to historic peaks. FPIs were also trying to factor in the distinct and potent risk of the potential third wave of the pandemic. Rising bond yields are a worry.

However, we need to put the entire story in perspective. Remember that while FPIs pulled out Rs.4,515 from equities in the first half of July, they also infused Rs.3,033 crore into debt. This resulted in net outflows of just about Rs.1,482 crore in first 16 days of Jul-21. Also, the selling in India in July on a net basis is nowhere close to what other emerging markets in Asia like Taiwan and South Korea have seen. To that extent, India may be better off.

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