FPIs Pull Out Rs.7,500 cr from Market in October

Foreign investors have pulled out nearly Rs.7,500 crore from the Indian market this month so far, after pumping in a staggering amount in September. Most of the funds have been withdrawn from debt markets during the period under review.
On October 4, the Reserve Bank slashed policy rate by 0.25% to 6.25%, a 6-year low.
According to depositors' data, net withdrawal by FPIs stood at Rs.6,929 crore from the debt markets during October 3-21, while it pulled out a net sum of Rs.566 crore from the equities during the period under review, translating into total outflow of Rs.7,495 crore.
The outflow comes following a net inflow of Rs.20,232 crore in September.
The outflow in equities could be attributed to a below-forecast reading on Chinese data that fanned fresh concerns about its economy . What clouded sentiment further was US Fed chief Janet Yellen's commentary on the US economy , indicating the need for aggressive steps to reboot it.

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