Foreign Portfolio Investors (FPIs) pulled out Rs 2,590 crore from domestic capital markets in June this year, which was the second consecutive month when the debt markets witnessed net outflows.
Overseas investors withdrew Rs 6,510 crore (net after selling and buying) from debt market in June. In May-June 2016, FPIs have withdrawn Rs 11,680 crore from the debt markets. While the debt markets witnessed net outflows for the second straight month, equity markets continued to witness net inflows. Net investments by FPIs in equity markets rose to Rs 5,180 crore in June 2016 from Rs 2,580 crore in the previous month. FPIs were net buyers of equity for 14 out of the 22 trading days during the month.
Mutual Funds investments in capital markets rose to their highest level in three months in June 2016. Net investments stood at Rs 43,950 crore during the month. Equity markets witnessed withdrawals, while investments in debt markets rose sharply during the month. Mutual funds withdrew Rs 85.9 crore from equity markets in June. Equity purchases fell to Rs 21,010 crore from Rs 25,930 crore while sales rose to Rs 21,090 crore from Rs 18,780 crore.
Mutual fund's net investment in debt markets rose to Rs 44,040 crore in June after withdrawals amounting to Rs 2,320 crore in the previous month. Total debt purchases were at a three month high which amounted to Rs 1,50,000 crore. Total debt sales fell to Rs 1,00,000 crore from Rs 1,30,000 crore in the previous month.
Data compiled from CMIE (Centre for Monitoring Indian Economy)