Foreign portfolio investors (FPIs) withdrew Rs 14,124 crore from Indian equities in the second half of September, with the healthcare, information technology and consumer durables sectors bearing the brunt of the sell-off.
According to data from Prime Database, outflows were sharpest in healthcare (Rs 4,521 crore), followed by IT (Rs 4,036 crore), consumer durables (Rs 3,301 crore), and fast-moving consumer goods (Rs 3,110 crore). Analysts attribute the exodus to policy shifts by the United States.
In September, the US government imposed higher H-1B visa fees and new restrictions, raising concerns over the sustainability of India's onsite-offshore IT delivery model.
At the same time, investor sentiment towards Indian pharmaceuticals soured following the US decision to levy 100 per cent tariffs on select branded and patented drug exports -- most generic drugs, the mainstay of Indian pharma, remain unaffected.
-- Sundar Sethuraman, Business Standard