FPIs offload Rs 64K cr in Jan

New Delhi: The exodus of FPIs from the Indian equity markets continues unabated, as they withdrew Rs64,156 crore ($7.44 bn) this month so far on depreciation of the rupee, rise in the US bond yields and expectation of a tepid earning season.

This came after an investment of Rs15,446 crore in the entire December, data with the depositories showed. The shift in sentiment comes amid global and domestic headwinds.

“The continued depreciation in Indian rupee is exerting significant pressure on foreign investors leading them to pull the money out of the Indian equity markets,” said Himanshu Srivastava, Associate Director, Manager Research, at Morningstar Investment Advisers India. In addition to that, higher valuation of Indian equities, despite recent corrections, expectation of a rather tepid earning season and macroeconomic headwinds are making investors wary, he said.