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By Malvika Gurung
Investing.com — The ongoing global market slump, led by the Russia-Ukraine crisis and surging oil prices, have escalated the rate of foreign outflows from domestic stocks.
Over the past week, foreign investors pulled out $2.9 billion worth of funds from Indian shares, and only two days into the ongoing week, the foreign investors have offloaded $2 billion of their funds from domestic stocks, as per Bloomberg data.
The aggravating tension between Russia and Ukraine led to multiple sanctions imposed on Russia by Western nations, including the US banning Russian oil imports. These factors have been shooting prices to record multi-year highs as Russia is the third-largest exporter of oil, besides raising worries of heightened inflation.
Such disturbances troubled global economic health, impacting emerging markets like India more, as it imports about 85% of its oil requirements.
Overseas investors have pulled out nearly $19 billion worth of funds from the domestic market since September 30, which is 50% of the foreign money brought in by local shares since the lows hit in March 2020, which has pushed the rupee value compared to the US greenback, to new lows.
On the other hand, domestic investors have added back almost $3 billion in Indian shares since Sept 30, 2021.
According to the report, the amount of funds debited during the recent foreign outflow is more than the outflow witnessed in the 2008 global financial crisis.
On Wednesday, FIIs made a net selling of Rs 4,818.71 crore, while domestic investors bought Rs 3,275.94 crore worth shares.
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