NEW DELHI:
Foreign investors
have pulled out a massive Rs 28,200 crore from Indian
equities
so far this month, owing to uncertainties about the outcome of the
general elections
and attractive valuations of
Chinese markets
.
The withdrawal was higher than a net pullout of 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.
Before that,
FPIs
made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in Feb. Going forward, there is likely to be a dramatic change in foreign portfolio investors’ equity flows in response to election results.
Political stability will attract huge inflows in the
Indian market
, VK Vijayakumar, chief investment strategist, Geojit Financial Services, said.
