$3.2 Billion Flows Out of Indian Markets as Oil Prices Surge Again

Foreign investors have pulled $3.2 billion from India's stock and bond markets in September, marking the largest outflows since March when the Iran war and oil supply crunch led to a massive exodus from Asian assets.

The sudden surge in oil prices above $100 per barrel Brent has put pressure on the Indian currency, the rupee, which has been one of the worst performers in Asia this quarter.

According to data compiled by Bloomberg, foreign investors sold off $2.1 billion worth of Indian stocks and $1.1 billion in index-eligible sovereign bonds in September.

Gautam Chhaochharia, head of global markets India at UBS Group, said that 'oil will be the biggest factor determining whether India sees renewed foreign outflows.'