Categories: Business

FPI withdraws money from the market for the third consecutive month, although the pace of withdrawal of money decreased

FPI investment
Image Source: GOOGLE

new Delhi. The withdrawal of foreign portfolio investors (FPIs) from Indian capital markets continued for the third consecutive month in May. FPIs pulled out Rs 7,366 crore from Indian capital markets in May amid the Kovid-19 crisis. According to the depository data, during May 1 to 29, FPIs invested a net Rs 14,569 crore in shares, but withdrew Rs 21,935 crore from the bond market. In this way he extracted Rs 7,366 crore net from the Indian capital markets. Earlier in March, FPIs pulled out a record Rs 1.1 lakh crore from the Indian capital markets. At the same time, in April, he had withdrawals of Rs 15,403 crore.

Research analyst Himanshu Srivastava, senior analyst manager at Morningstar India, said the withdrawals in May are lower than in April. The reason for this is that FPI invested $ 2.3 billion in Indian stock markets on the same day in the month of May 8. He said that this is due to the attractive valuation and the depreciation of the rupee against the dollar after a large correction in Indian stocks this year. Srivastava said that the Kovid-19 epidemic has spread to countries around the world. In such a situation, foreign investors are taking less risk and they are rebalancing their portfolios from emerging markets. They are now focusing on more secure investment options such as gold or the US dollar.

This post was published on May 31, 2020 10:02 pm

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