In the five years since 2016, FPIs recorded their second worst performance on total flows in the nine months ended September 2020, with debt flows recording their worst show of five years.
Foreign portfolio investors (FPIs) have taken out ₹1,30,491 crore between January and May 2020, making it the worst period in 5 years. March witnessed the maximum monthly outflow since 2016.
Both the Sensex and the Nifty 50 stage more than 14% recovery. The Sensex market capitalisation is up by nearly ₹7.63 lakh crore with 13.48% monthly growth.
The delay in stimulus announcement is disappointing and raises the probability that a stimulus, if any, might be weaker than expected, says Jefferies India.
Mauritius last week got the ‘eligible country’ status from India. Investment entities from the island country can register with SEBI as category–1 FPIs with less stringent KYC requirements.
Analysts with varied views have the 2008 global financial meltdown as the nearest comparable to the Covid-19 pandemic. But they are agreed on one thing: the need for caution.
Enhanced foreign investment limits in debt securities will be a boon for India, more so in the near term, as Covid-19 combating measures will drain government resources.
The slide continued through the week, though at a slower pace and also with some recovery. The Sensex ended Friday’s trade 2.39% lower from the previous day’s close. The Nifty 50 closed 2.06% lower.
