FIIs pull out Rs 3,000 cr from Indian equities in a week
Aug 25 2013 , New Delhi
The net outflow comes after foreign institutional investors (FIIs) infused a net amount of Rs 1,601 crore in the stock market during preceding week.
According to Sebi data, FIIs withdrew nearly Rs 3,000 crore from Indian equities last week, while they poured in about Rs 1,600 crore into the debt market.
Market analysts attributed the huge outflows to weak macro economic conditions and depreciating Indian currency.
Factors like concerns over the economic recovery, high inflation and widening current account deficit (CAD) made foreign investors pull out, they added.
Meanwhile, the rupee has been consistently hitting record lows and slumped to a lifetime low of 65.56 (intra-day) against the dollar on August 22. Since April 30, the local currency has depreciated by nearly 15 per cent.
Rupee rose by 135 paise to close at 63.20 on Friday.
Since the beginning of the year, foreign investors have made a net investment of about Rs 65,000 crore in equities, while they pulled out over Rs 25,000 crore from the country's debt market.