Market analysts attributed the latest outflow to the fall in the rupee, rise in crude oil prices, concerns over markets regulator Sebi's FPI circular and weakness in global markets.
Foreign investors lobby group Asset Managers Roundtable of India (AMRI) last week said that $75 billion will flow out of India if Sebi implements its proposed norms on KYC and beneficial ownership. However, the markets regulator brushed aside the concerns and termed the claim as "preposterous and highly irresponsible".
According to Himanshu Srivastava, Senior Research Analyst at Morningstar, there is a fair bit of uncertainty and cautiousness among FPIs at the moment.
"The focus of FPIs would be on their sustainability over the long-term," he said.
Overall, so far this year, FPIs have pulled out over Rs 34 billion from equities and more than Rs 426 billion from the debt markets.