New Delhi: Overseas investors have pulled out Rs 17,555 crore ($2.65 billion) from the Indian capital markets in the month due to sharp global sell-off triggered by a rout in Chinese equities.
The net outflow by Foreign Portfolio Investors (FPIs) come following a net investment of Rs 5,323 crore last month.
FPIs withdrew a net amount of Rs 16,936 crore from the equities till August 28, while they pulled out Rs 619 crore from the debt markets during the same period, translating into a net outflow of Rs 17,555 crore ($2.65 billion), according to data available with the depositories.
The final figure for August is likely to change as there is still one trading session left.
Of this total, FPIs withdrew a net amount of Rs 5,173 crore on the 'Black Monday' alone, when the benchmark BSE Sensex had crashed over 1,624 points, while 50-share NSE Nifty plunged 491 points.
FPIs have been wary since the beginning of August and been net sellers in the last seven trading sessions.
Experts attributed the huge outflow from the Indian capital markets to sharp global sell-off triggered by a rout in Chinese equity markets.
However, they believe that sell-off by FPIs is unlikely to continue for a long time.
Since the beginning of the year, FPIs have made a net investment of Rs 27,463 crore in the equities and Rs 38,732 crore in the debt markets.