Continuing their selling spree, foreign investors have pulled out close to Rs 3,200 crore from the Indian stock market this month so far on concerns that Donald Trump's impending reforms may spark outflows from emerging markets.
The net outflow by foreign portfolio investors (FPIs) comes following a withdrawal of Rs 4,306 crore from equity markets in October. Prior to that, the equity markets had witnessed an inflow of over Rs 10,000 crore.
Investors appeared to be cautious on fears that US President-elect Trump's planned huge spending policies would be inflationary that may lead to US interest rate hike and dent the appeal of emerging markets.
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According to the depositors' data, net withdrawal by FPIs from equities stood at Rs 3,175 crore during November 1-11 while they pumped in a net sum of Rs 2,446 crore in the debt market during the period under review, translating into a total outflow of Rs 729 crore.
So far this year, FPIs have invested a net sum of Rs 43,812 crore in stocks while they have pulled out Rs 1,112 crore from the debt market, resulting in a net inflow of Rs 42,700. Crore.
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