Overseas investors withdraw Rs 5,000 cr from Indian market 11/08/2014

Overseas investors withdraw Rs 5,000 cr from Indian market
11/08/2014 17:01
Foreign investors have started pulling out of the country’s capital market as rising geopolitical concerns and fears that the US Federal Reserve may start tightening its monetary policy stance sooner than earlier expected dim the appeal of emerging market equities. Overseas investors withdrew nearly Rs 5,000 crore in the current month from the capital market of Asia’s third biggest economy amid outflows from the country’s debt market, data from the Securities Exchange Board of India (SEBI) showed. Gross purchase of Indian equities and debt securities by foreign institutional investors (FIIs) in the month of August so far stood at over Rs 33,351.67 crore while gross sale stood at nearly Rs 38,215 crore, leading to a net outflow of Rs 4,863.3 crore. However, overseas investors remain net buyers in equities as they pumped in a modest Rs 100 crore so far in August. Overseas investors are pulling out of risky assets as geopolitical fears heighten amid the crisis in the Middle East including the fighting in Gaza and the deepening tensions in Iraq where the US has begun airstrikes to contain Islamic militants who have massacred religious minorities. The standoff between Russia and the West over the crisis in Ukraine has deepened with Moscow banning food imports from countries which slapped fresh sanctions against Russia.