FPI in April: The trend of foreign investors selling their holdings may pick up and there may be some more turmoil in the market.
Last month, a total of 118 crore rupees were also withdrawn from the debt market.
The round of buying by foreign investors in Indian markets for six months came to a halt in April. Foreign investors were net sellers in the month of April and they withdrew Rs 9,659 crore from the Indian stock markets during the month. In view of the severe wave of Corona virus in India and its impact on the economy, foreign investors changed their stance.
According to Hershad Chetanwala, co-founder of MyWealthgrowth.com, if the fear of the COVID-19 crisis in foreign investors increases, then the trend of foreign investors selling their shares can get a boost and the market may get a little more turbulent. According to the data available with the depository, last month, Foreign Portfolio Investors (FPIs) withdrew capital worth Rs 9,659 crore from the Indian equity market. For the first time since September 2020, capital has been withdrawn at this level. A withdrawal of Rs 7,782 crore was made then.
FPI poured 1.97 lakh crore between October – March
Prior to April, FPIs had invested Rs 1.97 lakh crore in equity between October, 2020 and March 2021. This includes an investment of Rs 55,741 crore made in the first three months of this year. Gaurav Dua, senior vice president, head of the capital markets strategy division of Share Mines (BNP Paribas) said, ‘Foreign investment in emerging markets in general is A recession has come. Especially in India, there is pressure on foreign institutions to sell equity due to the second wave of Corona virus and its impact on the economy.
FPI instantaneous effect
Binod Modi, the strategy head of Reliance Securities, said the sale of FPIs is a short-term process and is unlikely to pose a significant risk as the foundation of Indian equity is solid. He also said that the FPI inflow in equity could return in the coming months if there is a significant shortfall in COVID-19 cases.
118 crore removed from debt market
Apart from equity, FPI also sold a total of Rs 118 crore debt letters last month. So far this year, FPI has invested Rs 46,082 crore in shares, but has withdrawn a total of Rs 15,616 crore from debt papers.
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