Foreign Investors Pull Out Rs 2,000 Crore In Four Trading Sessions

New Delhi: Continuing their selling spree, foreign investors pulled out Rs 2,000 crore from the Indian capital markets in the last four trading sessions amid uncertainty over US presidential poll outcome.

Net outflow by foreign portfolio investors (FPIs) comes following a withdrawal of Rs 10,306 crore from the capital markets (debt and equity) in October.

Investor sentiment remained downbeat amid some reports projecting a possible win for Donald Trump in the US presidential poll.

"The outflow could be attributed to increased uncertainty on the US election outcome. Foreign investors have sold/ book profits to raise some cash before the outcome," Quantum Advisors head of fixed income and alternatives Arvind Chari said.

"Investors are concerned over the final lap of the US political battle and higher tax burden from GST. Even though GST is one step closer, white goods were impacted on fears of a higher tax burden than expected earlier," said Vinod Nair, head of research at Geojit BNP Paribas Financial Services.

According to the depositors' data, net withdrawal by FPIs stood at Rs 1,504 crore from the equities from November 1 to November 4, while it pulled out a net sum of Rs 496 crore from the debt markets during the period under review, translating into a total outflow of Rs 2,001 crore.

So far this year, FPIs have invested a net sum of Rs 45,482 crore in the stock markets and pulled out Rs 4,055 crore from the debt markets, resulting in a net inflow of Rs 41,427 crore.