During the month of July 2020, foreign portfolio investors or FPIs withdrew a sum of Rs.86 crore for the Indian markets in the first 3 weeks of July 2020. However, the pressure came from debt rather than from equities. FPIs invested Rs.2336 crore in equities but withdrew Rs.2422 crore from debt as US-China tensions created a risk-off atmosphere in global debt.

FPIs had net bought Rs.24,053 crore in June after 5 consecutive months of selling since the beginning of 2020. Even equity investments have been extremely restricted to select sectors with most of the FPI flows gravitating towards insurance and the IT sector, which are seen as defensive plays. Of course, FPIs have been aggressively investing into select IPOs.