"FPIs are taking on a 'stand by and watch' approach as opposed to turning around sharply. There keeps on being vulnerability in the worldwide economy and the fundamental situation is quick evolving. This will make the streams from FPIs unstable," Himanshu Srivastava, partner chief (director research), Morningstar India, said.
This is the least interest over the most recent four months.
Srivastava said that concerns about the global macroeconomic front, like higher crude oil prices and the reemergence of inflation risks, were to blame for the August slowdown in FPI investment.
He also said that some foreign investors would have moved away from riskier markets in favor of greater certainty and a better risk-reward profile offered by US treasuries if bond yields in the US had stabilized. Likewise, the irregular meeting in the Indian value markets might have brought about its valuation going past the solace level of a couple of financial backers, he added.