This has translated into a net investment of around Rs 1,659 crore in July so far into the capital markets (both equity and debt).
Commenting on the massive withdrawal from equities, Himanshu Srivastava, senior analyst manager research at Morningstar said, "FPIs have been on a selling spree ever since government proposed 'super-rich' tax in its budget and with no respite in sight from the government, the quantum of net outflows shot up."
Besides, other factors which are keeping foreign investors at bay from investing in Indian markets
are a tepid earning season, slower pace of GDP growth, sub-par monsoon and lowering of India's growth forecast from Asian Development Bank, he added.
He further added that from an investment perspective, the current scenario is clearly "unfavourable" for FPIs to invest in Indian equities.
Considering the global factors, Harsh Jain, COO at Groww said: "equity markets saw a net withdrawal this week as international tensions like US-Iran kept investors sentiments jittery while within India, quarterly results of a few companies also failed to meet the street's expectations.