FPIs offload Rs 28,200cr in equities in May

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.