Disillusioned with investors by Corona’s second wave, FPI withdraws Rs 4615 crore from Indian markets so far in April

The second wave of Coronavirus has caused panic throughout the country. Every day, cases of infection are increasing rapidly. Due to the sudden increase in Corona cases in the country, the clouds of crisis have started looming on the economic front. The biggest impact of this is being seen on the stock market. FPIs (Foreign Portfolio Investors) have withdrawn Rs 4,615 crore from Indian markets so far in April amid rising Corona cases.

Amid growing cases of Covid-19, there is uneasiness among foreign investors after the announcement of public restrictions in various states and they are withdrawing from the Indian market. According to the depository data, foreign investors pulled out Rs 4,643 crore from the shares net from April 1 to 16 and infused Rs 28 crore into the letter of credit or bond market. In this way, his net withdrawal from the Indian capital market was Rs 4,615 crore.

FPI made a net investment of Rs 17,304 crore in markets in March, Rs 23,663 crore in February and Rs 14,649 crore in January.

“Many states have taken restrictive measures to curb Covid-19,” said Rudmik Ojha, head of fundamental research, executive vice-president, Kotak Securities. Fearful of rising cases of infection and a fall in the exchange rate of the Indian currency, foreign investors are withdrawing funds.

S Ranganathan, head (research), LKP Securities, said, “The overall perception has been affected by the spread of the coronavirus. Several states have taken steps to stop the spread of the epidemic. All other indices, except pharma, were in losses last week.