FPI's cautious stance amid stock market volatility: Rs 9,000 crore purchase in May

Ahmedabad. Monday, May 25, 2020

Foreign portfolio investors (FPIs) have taken a cautious stance even amid the volatile environment in Indian stock markets caused by the Koro epidemic.

However, due to the availability of good stocks at low prices in the market, they have so far raised Rs. More than Rs 5,000 crore was taken by new borrowers.

According to market insiders, a cautious approach has been adopted by foreign investors in India amid the implementation of the lockdown. As part of the exercise, foreign investors saw a significant drop in their sales in April compared to March. Thus, after a two-month break, they once again turned to the Indian stock market.

Significantly, they have made a net investment in equities in May, despite selling by foreign investors in 12 of the 14 trading sessions so far in May.

According to the data available from the depository, in the current May. Foreign portfolio investors raised Rs. A new takeover of Rs 3,04 crore was undertaken. However, during the proposed period, they withdrew Rs. 31,616 crore was withdrawn. Earlier in April, foreign portfolio investors had made huge sales of Rs 2.7 crore and Rs 21.5 crore during March. Earlier in February, they had spent Rs. 150 crore new takers were undertaken.

Market analysts said that new portfolio investors have made new investments in the current month as interest is maintained even amid the cautious stance adopted by the Corona epidemic.

Thus, even in the midst of adverse conditions, their outflow was significantly reduced during the last month as compared to March.

The main reason behind their investment during the current month of May is that India has been relatively successful in controlling the corona virus. So there has been a slight increase in confidence in the Indian market. In addition, various measures have been announced by the government and the Reserve Bank to stabilize the economy in the wake of the Corona epidemic, which has had a positive impact on investors. On the other hand, they have done so in the Indian stock market due to the low price of preferred stocks.