Coronavirus scare: Foreign investors pull out over Rs 1 lakh cr in March

Lockdowns have become a norm world over and have led the FPIs to adopt a cautious stance

Govt looking for ways to stabilise FPI inflow: Garg

During April-September period, the Centre's fiscal deficit has widened to 95.3 per cent.

This follows a net outflow of over Rs 10,000 crore from the capital markets in the month of September.

Earlier, the limit for foreign portfolio investors (FPIs) was about Rs 1,87,700 crore.

Barring IT and tech, all sectoral indices, led by metal, realty, bank and auto were trading in positive.

However, in view of higher stock valuations amid surging markets, FPIs pulled out more than Rs 1,500 crore from equities.

Sensex rose to 32,223.18 points, up 194.29 points, while Nifty surged above 9,950 level to trade at 9,968.05.

However, experts said inflow from FPI is expected to remain subdued with depreciating US currency against the Indian rupee.

The reason for FPIs' net inflow is expectation from the government that it would speed up development and economic reforms.

Interestingly, most of the funds have been invested in the debt markets.