FIIs pull Rs 2,867 cr out from Indian markets in July

The latest withdrawal has come after investment of Rs 24,053 crore by FPIs in domestic markets in June.

Besides, FPIs have been net investors in the last quarter ended June as “valuations have become extremely rich after the sharp rally and disappointing Q4 FY20 earnings season,” Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities, said.

After remaining net buyers in June in the Indian equity markets, FPIs have gone slow with respect to their investments in Indian equities in July so far, said Himanshu Srivastava, associate director - manager research at Morningstar India.

 “This could be attributed to intermittent profit booking by FPIs given the surge in the Indian equities in June and in July so far,” Srivastava said.

 With a relatively long-term investment horizon, Indian equities could be a good investment option for FPIs especially once the COVID-19 crisis is over and the current market trend reverses, he added.

 In addition, he said that increased liquidity in the global markets may continue to make its way into the emerging markets, with India too benefiting from the same.