In the month of August so far, the foreign investors continued their relentless selling in the Indian equity markets offloading shares worth Rs 21,201 crore.

The development comes amid the unwinding of the yen carry trade, recession fears in the US and ongoing geopolitical conflicts.

Advertisement

The outflow was triggered due to the unwinding of the Yen carry trade after the Bank of Japan raised interest rates to 0.25%.

As per the data with the depositories, FPIs withdrew a net amount of Rs 21,201 crore in equities so far this month (August 1-17). FPI outflows witnessed in August were mainly driven by a combination of global and domestic factors.

On the other hand, FPIs invested Rs 9,112 crore in the debt market in August so far. This has taken the tally to Rs 1 trillion so far in 2024.

Notably, so far this year, FPIs invested Rs 14,364 crore in equities.

This came after an inflow of Rs 32,365 crore in July and Rs 26,565 crore in June.

Domestically, after being net buyers in June and July, some FPIs might have chosen to book profits following a strong rally in previous quarters.

FPIs infused funds in these two months on the expectation of sustained economic growth, continued reform measures, better-than-expected earnings season and political stability.

FPIs withdrew Rs 25,586 crore in May on poll jitters and over Rs 8,700 crore in April on concerns over a tweak in India’s tax treaty with Mauritius and a sustained rise in US bond yields.