Foreign Portfolio investors: FPIs have so far withdrawn 7622 crores in April amid the continuing decline in the stock market.
From October 2020 to March 2021, FPIs were net buyers.
The stock market has been under pressure for the last two weeks amid the crisis arising due to Corona. The Sensex has fallen by 1.95 per cent this week and by 2.39 per cent in the previous week. Foreign Portfolio Investors are also continuously withdrawing amid the continuing decline in the market. The FPI has extracted a net Rs 7622 crore from Indian markets so far in April. Due to this FPI, the stock market performed so brilliantly after Corona and it had reached the level of 52 thousand. From October 2020 to March 2021, FPIs were pure buying.
Investors’ perception has been affected by the curbing by various states amid rising cases of COVID. According to the depository data, investors have withdrawn Rs 8,674 crore from the shares during April 1 to 23. However, during this time he has added Rs 1,052 crore to the debt or bond market. In this way, his net withdrawal has been Rs 7,622 crore. Earlier, FPIs had infused Rs 17,304 crore in Indian markets in March, Rs 23,663 crore in February and Rs 14,649 crore in January.
FPI selling for last five weeks
“Now FPIs have been net sellers in the stock markets for five consecutive weeks,” said Research Star Himanshu Srivastava, Associate Director-Manager, Morningstar India. Srivastava said that the recent withdrawal of FPIs has led to a sharp rise in cases of COVID infection is. Due to this epidemic, many states have curbed. He said that the second wave is very serious and its impact on the economy has not yet been assessed. But of course this has clouded the prospects of an early revival in the economy.
Short-term boom in bond market
He said that as far as the bond market is concerned, due to uncertainty in the stock markets, it remains attractive in the short term. VK Vijay Kumar, chief investment strategist at Geojit Financial Services, said that the banking sector stocks are being sold in the market in general. At the same time, there is buying in global related stocks such as IT, metals and pharma. He said that FPIs are also adopting the same attitude to a large extent.
Market will also depend on crude oil and rupee performance
Market analysts say that the quarterly results of companies, news related to the COVID-19 transition and global indicators will decide the direction of the stock markets this week. Analysts say the market will remain volatile this week due to settlement of derivatives contracts. Analysts say that apart from this, investors will also keep an eye on the attitude of foreign investors, Brent crude oil prices and rupee fluctuations.
Results of these companies are coming this week
In the second wave of corona virus epidemic in the country, cases of infection are increasing rapidly due to which there are fluctuations in the stock markets. Quarterly results of big companies like Axis Bank, Maruti, Bajaj Auto, Hindustan Unilever and IndusInd Bank are due this week. Apart from this, the results of Tech Mahindra, Bajaj Finance, Hindustan Zinc, Titan Company and Reliance Industries will also be announced.
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