FPIs press exit button, pull out Rs 3,207 cr in May so far

Reversing their three-month buying streak, foreign investors pulled out a net Rs 3,207 crore from the Indian capital markets in the first seven trading sessions of May amid the US-China trade tensions and uncertainty over the election results.

Prior to this, foreign portfolio investors (FPI) poured in a net Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February in the domestic capital markets (both equity and debt).

During the period between May 2-10, FPIs invested a net sum of Rs 1,344.72 crore in equities but pulled out a net Rs 4,552.20 crore from the debt market, taking the total net outflow to Rs 3,207.48 crore, latest depositories data showed.

Markets were closed on May 1 on account of Maharashtra Day.

"While the long-term growth prospect remains for India, we have seen short-term headwinds in May," said Alok Agarwala, Senior VP and Head - Investment Analytics at Bajaj Capital.

Foreign investors have been net buyers in the Indian markets for the past .