'India delivering good returns, so FPIs booking profit'

AT a time when the market tanked for eight sessions on the trot and investors have lost more than ₹40 lakh crore of their invested value so far this year, finance minister Nirmala Sitharaman on Monday said foreign funds are selling because "India is delivering good returns to them and are thus booking profits," and not because of any market failure.

- BENN KOCHUVEEDAN

Replying to a question on continued selling by foreign portfolio investors (FPIs) who have dumped over ₹2 lakh crore worth of equities since October, Sitharaman played down the flight of funds from the country, saying "our economic foundations are strong and that we offer an environment where investments are yielding good returns and therefore FPIs are booking profit." Finance and revenue secretary Tuhin Kanta Pandey chipped in saying in times of global volatilities like the one that is being seen now, FPIs tend to go back to their country of origin which is mostly the US and that India is not the only emerging market that has been falling. There is no question of any market failure, Pandey said.

Claiming that there is nothing wrong with the economy and, therefore, the market volatility has nothing fundamental to it, he said, "The economy is firing from all cylinders despite the external headwinds and will continue to perform well."