FIIs pull out Rs 5,300 cr from bonds in Aug

  • PTI, New Delhi
  • Updated: Aug 17, 2014 14:10 IST

Overseas investors have pulled out nearly Rs 5,300 crore from the Indian debt market since the beginning of the month.

In comparison, equity market has witnessed modest inflow of Rs 1,150 crore during the period.

Foreign investors were gross buyer of debt securities worth Rs 9,175 crore till August 14, and sellers to the tune of Rs 14,448 crore -- a net outflow of Rs 5,273 crore, as per latest data.

The huge outflow comes after Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) poured in around Rs 80,000 crore in the first seven months (January-July) of 2014.

Market experts attributed the huge outflow to several factors such as geo-political unrest in Ukraine, Iraq and Gaza along with global economic issues like the defaults in Argentina and Portugal and the recent SLR (statutory liquidity ratio) cut by the Reserve Bank of India (RBI).

However, they maintained that the long-term prospects of staying invested in India are still positive.

Foreign investors have pumped in a staggering Rs 80,539 crore ($13.4 billion) into the Indian bond market so far this year, higher than investments of Rs 74,068 crore ($12.33 billion) into equities during the period.

From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Sebi to create a new investor category called FPIs.

From Around the Web
Sponsored by Revcontent

also read

TCS, Infosys, Lupin in Forbes India’s Super 50 list; Tata Motors, HUL dropped
Show comments

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Chrome and Ad BlockPlus users

1.Press the ‘ABP’ icon in your toolbar at top right of this page

2. Click on ‘Enabled on this site’; this should now change to ‘Disabled on this site’


chrome



For Chrome and Ad Block users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don’t run on pages on this domain’ and then click ‘exclude’ on the pop up


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Mozilla and AdBlock Plus (ABP) users

1.Press the ‘ABP’ icon in your toolbar

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Internet Explorer and AdBlock Plus users

1.Press the ‘AdBlock Plus’ icon in your status bar at the bottom of the screen

2.Select the option ‘Disable on hindustantimes.com’


chrome

Steps to disable Ad Blocker on your browser


In order to serve content on our website, we rely on advertising revenue which helps us to ensure that we continue to serve high quality unbiased journalism. From our end, we will aim to show clean and unobtrusive ads to provide you with a great browsing experience.

Request to please follow the steps below and once done, please refresh your page.


For Safari and AdBlock users

1.Press the ‘AdBlock’ icon in your toolbar

2.Select the option ‘Don't run pages on this domain’ and then click 'exclude'


chrome