In India, with the sudden increase in corona cases, the crisis in the financial arena has begun. The second wave of corona is dominating the stock market. Amid rising corona cases, foreign investors are backing away from the Indian market. If foreign portfolio investors (FPIs) have invested money in the Indian market till March, they have withdrawn money in April. Due to the corona crisis, FPIs are now facing the emerging markets of other countries. Foreign investors are now investing money in the Taiwan and South Korea markets, leaving the Indian market.
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Things to know
- Foreign investors have raised over Rs 1383 crore from the Indian stock market so far in April
- Foreign investors in the last six months. 26.8 billion in the Indian market.
- Six months later, the first foreign investors sold the Indian market in April.
- Foreign investors are expected to invest a total of Rs 1,03,156 crore in Indian markets by 2020.
Remained a net buyer until March
As of March -21, foreign investors remained net buyers in the Indian market. Foreign investors have invested Rs 17,304 crore in Indian markets, Rs 23,663 crore in February and Rs 14,649 crore in January.
The most invested country
India has emerged as the largest recipient of foreign investment in the financial year 2020-21. The total inflow during the period was Rs 2.6 lakh crore. According to experts, foreign investors have invested heavily in India in anticipation of more money and quick economic reforms in global markets.
Why withdrawal
According to experts, Covid cases are on the rise and FPIs are withdrawing due to the rupee crashing against the dollar. To the surprise of everyone at the monetary review meeting, the Reserve Bank announced the purchase of government securities (G-Sec) worth Rs 1 lakh crore in the first quarter of the current financial year. The rupee then fell and fell to $ 75 per dollar. Since then, other emerging markets have also begun to invest in FPI.
