FPI made a net investment of Rs 17,304 crore in markets in March, Rs 23,663 crore in February and Rs 14,649 crore in January.
There is uneasiness among foreign investors after the announcement of sanctions.
Foreign portfolio investors (FPIs) have withdrawn Rs 4,615 crore from Indian markets so far in April. Amid increasing cases of COVID-19, there is uneasiness among foreign investors after the announcement of public sanctions in various states and they are withdrawing from the Indian market. According to the depository data, foreign investors withdrew net Rs 4,643 crore from the shares between April 1 and 16 and infused Rs 28 crore into the letter of credit or bond market. In this way, his net withdrawal from the Indian capital market was Rs 4,615 crore.
The FPI made a net investment of Rs 17,304 crore in the markets in March, Rs 23,663 crore in February and Rs 14,649 crore in January. “Many states have taken restrictive steps to curb COVID-19,” said Rasmik Ojha, executive vice-president and head-basic research, Kotak Securities. Fearful of rising cases of infection and a fall in the exchange rate of the Indian currency, foreign investors are withdrawing funds.
Investors’ perception has been affected
S Ranganathan, head (research), LKP Securities, said, “The overall perception has been affected by the spread of the corona virus.” Many states have taken steps to stop the spread of the epidemic. All other indices, except pharma, were in losses last week.
Loss of 4.33 lakh crores to investors
The market cap of all the BSE listed companies fell by 4.33 lakh crore this week. Last week, the market cap of all companies was Rs 209.63 lakh crore, which came down to Rs 205.30 lakh crore. Of these, the market capitalization (market cap) of seven of the top 10 companies of the Sensex decreased by Rs 1,41,628.37 crore collectively. Companies in the information technology (IT) sector were the biggest losers. The Sensex lost 759 points in the whole week.
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