Covid-19 2nd Wave impact – FPIs pull out Rs 7,622 cr

{From PTI}

Overseas investors withdrew a net Rs 7,622 crore from Indian markets in April so far as a surge in COVID-19 cases and the consequent restrictions imposed by various states dent investors’ sentiment. According to the depositories data, overseas investors pulled out Rs 8,674 crore from equities, but invested Rs 1,052 crore in the debt segment. The total net withdrawal between April 1-23 stood at Rs 7,622 crore.

Previously, FPIs invested Rs 17,304 crore in March, Rs 23,663 crore in February and Rs 14,649 crore in January. FPIs have been “net sellers in the equity markets for five weeks in a row now”, noted Himanshu Srivastava, associate director – manager research, Morningstar India.

Srivastava said the recent spate of net outflows could be largely attributed to the enormous surge in the COVID-19 pandemic in India, which has led several states to impose restrictions to bring the situation under control. While the impact of a more severe second wave of the pandemic on the economy is yet to be ascertained, it has definitely dashed hopes of an early economic recovery, he further added.

For investment in the debt segment, he said, “The uncertainty in the equity markets has made the Indian debt markets relatively attractive from the short-term perspective”. VK Vijayakumar, chief investment strategist at Geojit Financial Services NSE -2.26 % noted that as per the general trend in the market, there is selling in stocks like the banking sector, and buying shares with global linkages like IT, metals and pharma.

Finvestor Social Media

Krishna Rath is a SEBI Registered Investment Adviser, and since 2015 has been educating netizens on investments and insurance. Krishna is a fee only SEBI RIA and is Odisha's first SEBI RIA. With background in IT, Krishna is changing the advisory space with new innovations in AdvisoryTech.

See Full Bio