InvestorQ : How was the Foreign Portfolio Investor (FPI) action in the month of April 2020? Did they continue to be sellers in India?
Anu Biswas made post

How was the Foreign Portfolio Investor (FPI) action in the month of April 2020? Did they continue to be sellers in India?

Answer
user profile image
Neelam Naik answered.
4 months ago


Selling by FPIs continued in April 2020, although it was nothing close to being as bad as in March 2020. In fact, April saw FPIs withdrawing Rs.15,403 from Indian debt and equity markets put together. Regarding the break-up, FPIs pulled out a net sum of Rs.6884 crore from equities and Rs.8519 crore from debt in the month of April. This is substantially better than the Rs.120,000 crore of selling by FPIs in the month of March 2020. Most of the buying is still happening in the NBFC and pharma sectors. The only reason the outflows have continued is the uncertainty surrounding economic recovery and caution on the back of a weak rupee. Experts believe that the FPIs would continue to adopt a cautious stance even in the months ahead. Of course, a lot will now depend on how the stimulus package is worked and how well India manages to avoid the full impact of the epidemic unlike the US and UK. A clearer picture will only emerge when the selective relaxation of lockdowns are implemented and most FPIs will want to ensure that the return to economic activity is smooth and uneventful.