Remaining risk-averse amid the coronavirus pandemic, in April, from Indian capital markets so far overseas investors have withdrawn net Rs 10,347 crore.
The total net outflow was of total corpus around Rs 10,347 crore.
from March, moreover all the quantum of outflows have experienced a downfall, when FPIs had withdrawn total sum of Rs 1.1 lakh crore on net basis from Indian markets based on both equity as well as debt.
Himanshu Srivastava, who is the senior analyst manager research at Morningstar India stated that the sharp drop in the quantum of net flows could be attributed to India gaining prominence among foreign investors.
IHe also added on to that, all the measures and guidelines that are announced by the government and the RBI periodically to revitalize the sagging economy would also be resonating well with investors.
Moreover, he said that the sentiments continue to be negatively tilted and FPIs would largely catch up a wait-and-watch way with more focus on taking short-term tactical bets.
Towards crises of this magnitude, emerging markets are considered to be riskier investment destination and more prone . With low risk in appetite, foreign investors drift towards safer investment avenues and safe havens such as USD and gold.
As per Srivastava, it would be very much early to consider it as a precursor to a change in trend all though the drop down in the quantum of net outflow is a positive indicator.
In addition to that he also said that as COVID-19 pandemic is concerned, the scenario continues to be grim as far . The world is having its eye at a global economic slowdown and a long fight against coronavirus. The degree of damage that it can have on the global economy, businesses and markets worldwide is yet to be accurately ascertained. Markets and investments are going to experience very much adverse effect in the coming days.