Foreign investors have pulled out over Rs 1,000 crore in the first eight days of trading this month from bourses amid concerns over domestic economic growth and depreciating rupee.
During June 1 to 8, foreign institutional investors (FIIs) made gross purchase of equities worth Rs 16,954.10 crore and sold shares valued at Rs 18,021 crore, translating into a net outflow of Rs 1,067 crore, according to the data available with the market regulator Sebi.
FIIs had pulled out Rs 347 crore from the equity market in May and another Rs 1,109 crore in April.
Market experts attributed the outflow to a slew of reasons such as depreciating rupee, slowing economic growth, high fiscal and current account deficit as well as lack of reform momentum.
"Foreign investors are staying away from the Indian equity market, despite having an attractive valuation, mainly on account of volatility in rupee, which is hovering around the 56-level against US dollar," a broker said.
He further said, "In