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Foreign portfolio investors (FPI) have withdrawn net investment of Rs 5,689 crore so far in July from the Indian equities segment.

The outward flow of FPIs can be attributed to the global concerns over multiple variants of Covid-19, analysts said.

Arun Agarwal, Deputy Vice President, Fundamental Research at Kotak Securities said: "All key emerging markets and Asian markets have seen FPI outflows this month to date except Indonesia. We expect FPI flows to India to remain vulnerable to US Fed monetary policy and crude oil prices."

The outflow of FPIs from equities comes after investors made a comeback in June with net investments worth Rs 17,215 crore.

So far in 2021, FPIs have made net investments worth Rs 54,655 crore into the country's equities segment.

In the week ending Friday, the markets bounced back in the latter half of the week after a weak start and reversed most of the losses to end with almost flat returns. BSE Sensex and Nifty50 declined by 0.3 per cent and 0.2 per cent respectively.

Broader markets too remained broadly flat with BSE Midcap and BSE Smallcap index closing marginally lower at 0.4 per cent and 0.1 per cent respectively for the week.

"In the absence of any major economic data, markets focused on corporate earnings and commentaries from management. In the near term, markets will continue to focus on corporate earnings while keeping a tab on macro events and key data release," Kotak Securities' Agarwal said.