Wednesday, Jul 15, 2020 | Last Update : 11:46 PM IST

113th Day Of Lockdown

Maharashtra27564015261310928 Tamil Nadu1518201023102167 Delhi115346932363446 Karnataka4407717391846 Gujarat43723305552070 Uttar Pradesh3972424981983 Telangana3774524840375 Andhra Pradesh3545118378452 West Bengal34427206801000 Rajasthan2557119169524 Haryana2262817090312 Madhya Pradesh1900513575673 Bihar1885313019143 Assam178081217451 Odisha14280986496 Jammu and Kashmir111736223195 Kerala8931443835 Punjab85115663213 Chhatisgarh4379327520 Jharkhand4225242836 Uttarakhand3686286750 Goa2753160718 Tripura218315382 Manipur167210200 Puducherry153182918 Himachal Pradesh130993810 Nagaland8963460 Chandigarh60044610 Arunachal Pradesh3871453 Meghalaya318462 Mizoram2381590 Sikkim211860
  Business   Market  19 Apr 2020  FPIs pull out Rs 12,650 cr in April amid covid19 crisis

FPIs pull out Rs 12,650 cr in April amid covid19 crisis

PTI
Published : Apr 19, 2020, 12:44 pm IST
Updated : Apr 19, 2020, 12:44 pm IST

Between April 1 to 17, FPIs pulled out a net sum of Rs 3,808 crore from equities

 FPIs pull out Rs 12,650 cr in April. (PTI Photo)
  FPIs pull out Rs 12,650 cr in April. (PTI Photo)

New Delhi: Foreign portfolio investors (FPIs) have withdrawn a net Rs 12,650 crore from the Indian capital markets in April so far amid the coronavirus crisis.

Between April 1 to 17, FPIs pulled out a net sum of Rs 3,808 crore from equities and Rs 8,842 crore from the debt segment, the depositories data showed.

The total net outflow stood at Rs 12,650 crore.

However, April has been a tad better compared to March, when overseas investors had withdrawn a record Rs 1.1 lakh crore on a net basis from the Indian markets (both equity and debt).

The quantum of net outflows has significantly slowed down, at least from equities, said Himanshu Srivastava, senior analyst manager research, Morningstar India.

"Out of eight trading days so far in the holiday truncated month, FPIs were net buyers in the Indian equity markets in four," he said.

Citing the reason for net inflows on some days in April, Harsh Jain, co-founder and COO at Groww, said "global markets are becoming more stable. The general belief is that the virus has peaked in many parts of Europe which is aiding the sentiments of global investors. The oil deal between OPEC and Russia is also contributing to the relatively more stable markets."

According to Srivastava, the widespread concern among foreign investors about slowdown in the global economy due to the COVID-19 outbreak has been keeping them on the tenterhooks.

He added that slowdown in the quantum of net outflows in April does not indicate a change in the trend at this juncture as the underlying environment continues to be negative.

However, he said this could be a result of India gaining prominence among foreign investors for doing well with regards to containing the pandemic.

In addition to that, measures announced by the government and the RBI periodically to revitalise the sagging economy would also be resonating well with investors. The sharp fall in the markets has also provided investors an opportunity to invest at relatively attractive levels, he said.

Going forward, Srivastava cautioned that "there lies a bumpy ride ahead."

In such times of uncertainty, FPIs would continue to adopt a measured approach when it comes to investing in emerging markets like India. With low risk appetite, they would continue to drift towards safer investment avenues and safe havens such as USD and gold, he said.

Tags: foreign portfolio investors (fpis), indian capital markets, coronavirus crisis, outflow of funds, indian markets, global economy
Location: India, Delhi, New Delhi