After healthy inflows in June, FPIs are back to being net sellers in July. Foreign Portfolio Investors pulled out Rs.9015 crore in the month of July 2020, in the first 2 weeks. According to data provided by NSDL and CDSL, FPIs withdrew Rs.6058 crore from equities and Rs.2957 crore from debt. This has clearly been driven by COVID overhang and risk-off investing.

It may be recollected that June had seen net inflows of Rs.24,053 crore from FPIs after consistent selling between January and May 2020. Most emerging market witnessed outflows during the third week with South Korea being the only market to attract FPI flows. Most market experts aver that the FPI flows could remain volatile for the rest of the year.