FPIs pull out Rs 4,615 crore from Indian markets

NEW DELHI: Foreign portfolio investors (FPIs) have pulled out a net Rs 4,615 crore from Indian markets in April so far amid sharp escalation in Covid-19 cases and the consequent restrictions imposed by various states, unnerving overseas investors.
According to the depositories data, overseas investors pulled out Rs 4,643 crore from equities, but invested Rs 28 crore in the debt segment.
This translated into a total net withdrawal of Rs 4,615 crore during April 1-16.Previously, FPIs invested Rs 17,304 crore in March, Rs 23,663 crore in February and Rs 14,649 crore in January.
“Various states have imposed restrictions of varying degrees to curb the sharp rise in Covid-19 cases. The fear of rising coronavirus cases and currency depreciation has led to FPI outflows in this month to date,” Rusmik Oza, executive vice-president and head (fundamental research) at Kotak Securities, said.
With respect to other emerging markets, Oza noted that electronics and chip-exporting countries South Korea and Taiwan are witnessing positive FPI flows, whereas others are witnessing no major inflows. —PTI


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