New Delhi: Overseas investors pulled
900 crore on
net basis from Indian markets
in the first four trading sessions of this month as weak economic data and India-China border tensions hit market sentiment.
Prior to this,
net buyers for three consecutive months. They invested
Rs 46,532 crore
Rs 3,301 crore
in July and
Rs 24,053 crore
in June on
FPIs turned cautious at the start of the week ahead of the release of the GDP data. Amidst the coronavirus pandemic, India’s GDP for the quarter-ended June 2020 contracted by huge 23 per cent, which dented sentiments,” said Himanshu Srivastava, associate director – manager research, Morningstar India.
They also stayed on sidelines on the back of weak global cues and rising border tension between India and China, he added.
net outflow during this week could also be a result of profit booking by
in anticipation of further escalation of tension between India and China and extension of weak domestic economic environment, he added.
Rusmik Oza, executive vice president, head of fundamental research at Kotak Securities noted that FPI flows were “quite suppressed this week.”
The rising cases of coronavirus
in India which has crossed 4 million and the sharp sell-off
in the US markets could lead to outflows by
in the coming weeks, Oza added.
On the global front, while rising coronavirus cases and tension between US and China could
turn investors risk averse if the scenario demands; at the same time, the availability of surplus liquidity
in the global financial system may ensure that India continues to receive its share of investments, Srivastava said.