Foreign investors have been withdrawing money from the Indian stock market for the last two months. However, investments have been made in the debt market. The economy can improve due to reduced cases of corona.
Foreign investors withdraw money from Indian market
Due to the second wave of Corona, there is a period of ups and downs in the Indian economy. This is the reason why the confidence of foreign investors has also started to waver in the Indian economy. Foreign investors are withdrawing their money from the Indian stock market for two consecutive months. In April, he had withdrawn about Rs 9,435 crore. At the same time, in the month of May, he has withdrawn Rs 1,730 crore from the Indian market.
According to depositories data, foreign investors pulled out Rs 3,375.2 crore from the stock market during May 1 to May 28, which includes data from both debt and equity markets. Since Rs 1,645.8 crore has been invested in the debt market, there has been a withdrawal of more than Rs 1700 crore. Experts say that in May, investors have also withdrawn money from emerging and Asian markets. In this, $ 8.5 billion has been withdrawn from the South Korean stock market and $3.13 billion from the Taiwanese market.
Things may improve in the coming days
After seeing withdrawals for 8 consecutive weeks in the Indian stock market, foreign investment is showing signs of stabilization in the last two weeks. Apart from this, the rates of corona infection in India are also declining. The process of vaccination is also progressing rapidly. In such a situation, it is being seen as a positive sign. In such a situation, market experts believe that the situation will be better in the coming days. Also, if you give concession in Lockdown gradually, the pace of economic growth can be seen. This will also benefit the stock market.
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