INDIA
IS HOT MONEY EVAPORATING FROM CAPITAL MARKET
FOREIGN PLAYERS ARE CAUTIOUS ABOUT BETTING ON INDIA
2018-11-12 10:09
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Officials in the finance ministry may disagree, foreign portfolio investors may not be seeing India an attractive destination, at least for now. Overseas investors pulled out a massive Rs 38,900 crore (over $5 billion) from the capital markets, last month. It was the steepest outflow in nearly two years. In November 2016, FPIs had pulled out Rs 39,396 crore from the capital markets. The total outflow from the capital markets (equity and debt together) has reached over Rs 1 trillion so far, this year. FPIs are becoming increasingly cautious about the Indian market. It is not clear if this has anything to do also with the government’s bid to seize RBI’s key powers in the face of uncertain trade and economic developments.