FPIs net sellers for 2nd month, pull out Rs 1,730 crore in May

In April, the total net outflow from the Indian capital markets (both equity and debt) stood at Rs 9,435 crore. According to depositories data, overseas investors withdrew Rs 3,375.2 crore from equities but invested Rs 1,645.8 crore in the debt segment between May 1 and May 28.

According to depositories data, overseas investors withdrew Rs 3,375.2 crore from equities but invested Rs 1,645.8 crore in the debt segment between May 1 and May 28.

Foreign portfolio investors (FPI) turned out to be net sellers for second month in a row by taking out nearly Rs 1,730 crore from domestic markets in May as second wave of the coronavirus pandemic spooked investor sentiment.

In April, the total net outflow from the Indian capital markets (both equity and debt) stood at Rs 9,435 crore. According to depositories data, overseas investors withdrew Rs 3,375.2 crore from equities but invested Rs 1,645.8 crore in the debt segment between May 1 and May 28.

This took the total net outflow to Rs 1,729.4 crore.

However, Morningstar India Associate Director (Manager Research) Himanshu Srivastava said the FPI flows into the Indian equity markets have been showing signs of stabilisation over the past two weeks, after witnessing a significant net outflows for eight weeks in a row.

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Kotak Securities Executive Vice-President (Equity Technical Research) Shrikant Chouhan said most emerging and Asian markets have seen FPI outflows this month to date.

Falling coronavirus cases in India and signs of improvement in the overall situation is a positive sign, said Srivastava.