India-focused offshore funds and ETFs pull out $1.9 billion in 4 months

The mood among long-term overseas investors is turning sour. In the last four months ending May, India-focused offshore funds pulled out $966 million from Indian equities, with rising crude oil prices, the rate hike by the US Federal Reserve and volatility ahead of the general elections spooking investors. 

This is the highest sales since last January. These funds had bought into Indian stocks every month in the calendar year (CY) 2017, pumping in $5.76 billion. While the moving out of long-term money is a concern, it is not entirely unexpected, said experts.

“Investors who have invested over the last three to five