According to information available on the NSDL website, so far in April, foreign investors have pulled out 740 crores from the equity market.
As Corona cases are increasing, investor confidence is decreasing. This is the reason why foreign portfolio investors have withdrawn funds worth Rs 929 crore from the Indian market so far in April. Since September 2020, FPI invested heavily in Indian markets. In January this year, FPI has added 14649 crores, in February 23663 crores and in March 17304 crores. So far this year, a total of 54686 crore rupees have been received.
According to the information available on the NSDL website, so far in April, foreign investors have pulled out 740 crores from the equity market and 645 crores from the debt market. However, 456 crores were also invested in debt VRR funds, which led to a total sales of 189 crores in the debt market. 12 crore has been removed from the hybrid market. FPI had put a total of 103156 crores in the Indian markets in the year 2020. Since September 2020, FPIs have been buying on a monthly basis. After six months, this is the first time they are selling.
Rasmic Ojha, executive vice-president, basic research, Kotak Securities, said that FPIs are withdrawing due to rising cases of COVID and a fall in the rupee against the dollar. He said, “Surprising all at the monetary review meeting, the Reserve Bank announced the purchase of government securities (G-Sec) worth Rs 1 lakh crore in the first quarter of the current financial year. After this, the rupee depreciated and came in from 72.4 to 74.8 per dollar. ”
The rupee has closed at the level of 74.75 against the dollar this week. Ojha said that now other emerging markets have also started getting FPI investment. In this month, South Korea and Taiwan have received FPI investment.