The effect of corona is also seen on FPI. Foreign Portfolio Investors (FPIs) have netted Rs 7,622 crore from Indian markets so far in April.
Earlier, FPIs had infused Rs 17,304 crore in Indian markets in March, Rs 23,663 crore in February and Rs 14,649 crore in January. “Now FPIs have been net sellers in the stock markets for five consecutive weeks,” said Shodh Himanshu Srivastava, Associate Director-Manager, Morningstore India.
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Withdrawal due to coronaSrivastava said that the reason for the recent withdrawal of FPIs is the rapid increase in cases of Kovid infection. Due to this epidemic, many states have curbed.
He said that the second wave is very serious and its impact on the economy has not yet been assessed, but certainly it has clouded the prospects of early revival in the economy. He said that as far as the bond market is concerned, due to uncertainty in the stock markets, it remains attractive in the short term.
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Selling in banking sector
VK Vijayakumar, chief investment strategist at Geojit Financial Services, said that the banking sector stocks are being sold normally in the market. At the same time, there is buying in global related stocks such as IT, metals and pharma. He said that FPIs are also adopting the same attitude to a large extent.