March Could See Highest Ever FPI Withdrawal From Indian Markets

As of date, foreign portfolio investors have withdrawn a net amount of over Rs 51,000 crore in March, according to a BloombergQuint report citing National Securities Depository Limited (NSDL) data. FPIs have sold Rs 31,517 crore in equity and Rs 20,528 crore in debt, so far, in the current month.

Considering the sharp decline in the Indian stock market benchmark indices with an already 20 percent fall in Sensex in the first half of March, the outflows of foreign investment may become the highest ever on record going by NSDL data available till 2002.

It has already surpassed the Rs 44,162 crore outflows in June 2013, at the time of taper tantrum. The final number for March could vary if in investor sentiment changes in the global markets.

Rapidly spreading coronavirus, that has infected over 180,000 worldwide and killed more than 7,000 have turned markets turbulent around the globe. Investors are selling heavily for cash.

Despite rate cuts announced by major central banks and funding from international bodies like the World Bank and IMF, concerns of a serious economic slowdown continue to loom among market participants.