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REITs on track for sixth consecutive month of outflows: Rs 45.6K cr withdrawn in March so far

So far, foreign investors have withdrawn a total of Rs 45,608 crore from domestic markets this month, which could make March the sixth consecutive month of REIT selling.

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Foreign portfolio investors (REITs) fear that India will be hit more by rising commodity prices, especially crude, as India is a major importer, said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

According to data from custodians, REITs withdrew Rs 41,168 crore from equities, Rs 4,431 crore from the debt segment and Rs 9 crore from hybrid instruments, bringing the total net outflow between March 2 and March 11 to Rs 45,608 crore.

This will be the sixth consecutive month of REIT exits from Indian markets.

The sale is mostly limited to financial and IT services since those segments make up the bulk of assets in REIT custody, Vijayakumar noted.

The geopolitical crisis has also shifted market flows and shifted sentiment from one risk to another, leading to pullbacks from most emerging market economies, he pointed out.

Shrikant Chouhan, head of equity research (retail) at Kotak Securities, said that except for Thailand, all other emerging markets have seen outflows so far in March.

“Taiwan, South Korea, Indonesia and the Philippines recorded REIT outflows of $7,089 million, $2,665 million, $426 million and $26 million, respectively. On the other hand, Thailand recorded inflows of $102 million,” he said. with PTI