Foreign investors have pulled out a staggering over Rs 62,000 crore ($10.5 billion) from the Indian capital market in the past two months amid concerns about the depreciating rupee.
Market analysts expect selling pressure by foreign institutional investors (FIIs) to continue in the near-term. FIIs had withdrawn Rs 18,124 crore from the debt and equities markets in July after pulling out a record Rs 44,162 crore in June, according to Sebi data.
More than Rs 45,000 crore were pulled out from the debt market in June and July, while over Rs 17,000 crore were withdrawn from equities.
Weakness in the rupee was instrumental in overseas investors exiting the capital markets as the rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with, according to experts.
Published 04 August 2013, 17:50 IST