According to the depository data, foreign institutional investors have withdrawn Rs 9,659 crore from the stock markets in April 2021 as well.
Weak currency has also contributed to this.
Foreign Institutional Investors (FPIs) have withdrawn Rs 5,936 crore from Indian stock markets in the first week of May. The amount was withdrawn amidst growing concern over the havoc of the second wave of Corona virus in the country and its impact on the economy.
According to the depository data, foreign institutional investors have withdrawn Rs 9,659 crore from the stock markets in April 2021 as well. Whereas during the first six months, he has continuously increased investment in Indian stock markets. Himanshu Srivastava, Assistant Director – Manager, Research Unit, Morningstar India, said that if foreign investors are afraid of COVID-19, further withdrawal from the stock markets cannot be ruled out.
5936 crore clearance in the stock market
According to the available data, during May 3 to 7, FPIs have made a total withdrawal of Rs 5,936 crore from the Indian stock markets. Earlier in April, he also made a withdrawal. Whereas before that, he was continuously investing in shares since October 2020. He invested Rs 1.97 lakh crore in the Indian stock markets from October 2020 to March 2021. This includes a net investment of Rs 55,741 crore made during the first three months of this year.
Investors panicked by Corona’s new cases
Alok Agarwal, chief research officer, Bajaja Capital, said FPI has withdrawn from the stock given the rapid rise in COVID-19 cases in the country, the lockdown in various states and ultimately its impact on economic growth. Along with this, weak currency has also contributed to this.
Profit recovery may also be the reason
However, Hrough Jain, chief operating officer and co-founder of Grouse, has said that the recent withdrawal of FPIs could also be due to profit recovery. “FPI started investing in the country from April 20210 itself.” Since then, there has been a steady trend in the market and many people have given good returns in the stocks they bought. ”
40 thousand crore investment so far this year
On the other hand, if we talk of debt letters, FPI invested Rs 89 crore in them in the first week of May, whereas in the previous month they had sold a net of Rs 118 crore. However, if we talk about the investment so far in this calendar year, then the foreign investors have made a net investment of Rs 40,146 crore in equity, while on the other hand they have withdrawn Rs 15,547 crore from debt papers.
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