Foreign portfolio investors' huge net sales of Rs 1.1 lakh crore in March
(Commerce Rep) Mumbai, Apr 6, 2020, Monday
This month's historic downturn in Indian stock markets has been accompanied by a glut in the global stock market as a result of the global corona epidemic. This month, Foreign Portfolio Investors (FPIs) continued to sell and sold shares and debt instruments worth over Rs 1.5 lakh crore.
According to the depository data, FPIs issued shares worth Rs. 1.5 crore and Rs. A net net sales of Rs. With this, the total amount of Rs. Net sales of Rs. It is worth mentioning here that since September 1, FPIs have been net sellers on March 7 after being a constant buyer in the Indian market for six consecutive months. The National Securities Depository Limited (NSDL), which has been the largest seller since March 8, has started selling data for FPIs ever since. In addition, FPIs have made a net sale of Rs 5 crore in local markets in just two trading days in April. Of this, shares have been sold for Rs. 1 crore and debt segment has been sold for Rs.
Regarding the massive sale of foreign funds, market analysts say that in the month of March, these large sales were mostly through quant funds, hedge funds and risk parity funds, and considering the potential negative impact on the global economy as a result of the pervasive corona epidemic. It could be. It is worth noting here that the current situation is even worse with the financial crisis of the year. At that time, foreign portfolio investors (FPIs) sold net assets of $ 1.8 billion in Indian markets. The net sales of $ 8 billion in the first six months of March alone.
Along with this, some analysts say that the net sale of funds in developing nations' markets is likely to continue until the Corona pandemic situation stops. It may be mentioned that the Reserve Bank of India raised the limit on investment of corporate bonds of FPIs on March 1, 2005 to 5 percent.
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