FIIs pull out Rs 8,500 cr from debt market in 2 weeks

July 14, 2013 11:04

Overseas investors pulled out nearly Rs 8,500 crore (about $1.4 billion) from the debt market in the last fortnight amid concerns over depreciating rupee, which dropped to a record low of 61.21 against the dollar during the period.

During July 2-12, Foreign Institutional Investors (FIIs) were gross buyers of debt securities worth Rs 4,989 crore, while they sold bonds amounting to Rs 13,463 crore translating into a net outflow of Rs 8,474 crore ($1.41 billion), according to the Sebi data.

The latest outflow comes after a net pull-out of Rs 33,135 crore ($5.7 billion) from the debt securities in June. FIIs had turned net sellers of debt securities here for the first time in 13 months.

Moreover, foreign investors withdrew a net amount of Rs 290 crore from the equity market in June so far.

Market experts attributed the weekly sell-off to weakness in Indian currency, which is instrumental in FIIs exiting the debt markets as rising cost of hedging a volatile rupee hurts the yield differential the FIIs work with.

« Back to LIVE

TOP STORIES

Neeraj Chopra finishes second in Doha Diamond League

Olympic and world champion Neeraj Chopra finished second at the Doha Diamond League meeting javelin throw event as his big final effort of 88.36m fell short by two centimetres of Jakub Vadlejch's winning effort in Doha on Friday.

In Pictures - Gill, Sudharsan hit centuries as GT ease past CSK

IMAGES from the IPL 2024 match between Gujarat Titans vs Shubman Gill at the Narendra Modi Stadium in Ahmedabad on Friday.

Mani Shankar Aiyar's 'Pak atom bomb' remark sparks row

Congress leader Mani Shankar Aiyar's remarks on Pakistan sparked a political row on Friday, with his party quick to dissociate itself from the comments while the ruling Bharatiya Janata Party latched on to them, accusing the Congress of...

Kejriwal walks out of Tihar on 21-day bail, but can't go to office

Embattled Delhi Chief Minister Arvind Kejriwal walked out of the Tihar Jail on Friday evening, hours after the Supreme Court granted him interim bail in a money laundering case to enable him to campaign in the Lok Sabha elections, in a...

Probe agencies failed to unmask Dabholkar murder masterminds: Court

The investigating agencies could not expose the masterminds behind the murder of rationalist Dr Narendra Dabholkar, and must introspect whether it was a mere failure or a 'deliberate inaction' due to the influence of any 'person in...