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FPIs pull out over Rs 9,500 crore from equities in January

However, these Foreign Portfolio Investors (FPIs) continue to remain bullish on the Indian debt market and invested a net amount of Rs 2,353 crore during the period.

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Overseas investors have pulled out more than Rs 9,500 crore from the Indian stock markets since the beginning of the month on global growth worries and a sharp dip in oil prices.

However, these investors continue to remain bullish on the Indian debt market and invested a net amount of Rs 2,353 crore during the period.

According to data available with depositories, Foreign Portfolio Investors (FPIs) infused a gross amount of Rs 53,296 crore into equity markets between January 1 to 22, while they pulled out Rs 63,259 crore during the same period, resulting in a net outflow of Rs 9,963 crore ($1.47 billion).

ALSO READ: FPI net outflows over Rs 6,200 crore during the week

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 crude oil slipping below $28 per barrel (nearly Rs 1,893.64). In addition, muted earnings and widening trade deficit to $11.6 billion (nearly Rs ​78,624.8 crore) in December as against $9.1 billion (nearly Rs 61,679.8 crore) in the year-ago period, further battered the market mood.

The investor sentiment is also rattled by depreciating rupee and concerns over the health of the Chinese economy, said Vinod Nair, Head of Fundamental Research of Geojit BNP Paribas Financial.

In 2015, FPIs had infused a net amount of Rs 17,806 crore in equities and Rs 45,856 crore in bond markets.  

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