Moneycontrol PRO
UPCOMING EVENT:Watch leaders discuss the biggest issue of our times at the Sustainability 100+ Summit. Register now!

COVID-19 impact: FPIs net sellers at Rs 4,444 crore in May so far

As per depositories data, foreign portfolio investors (FPIs) took out Rs 6,370 crore from equities but pumped in Rs 1,926 crore in the debt segment between May 1-21.

May 23, 2021 / 03:06 PM IST

Overseas investors withdrew Rs 4,444 crore from Indian markets in May so far amid concerns over the second wave of the coronavirus pandemic and its possible impact on the Indian economy.

As per depositories data, foreign portfolio investors (FPIs) took out Rs 6,370 crore from equities but pumped in Rs 1,926 crore in the debt segment between May 1-21.

This took the total net outflow to Rs 4,444 crore.

"The concern over the second wave of coronavirus pandemic and its possible impact on the Indian economy continue to keep foreign investors on the sidelines and restrain them from investing substantially into the Indian equity markets," said Himanshu Srivastava, associate director - manager research, Morningstar India.

At the same time, signs of improvement in the coronavirus situation in the last two weeks have provided some comfort and has resulted in sharp decline in net outflow numbers, he added.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

In April, the total net outflow from the Indian capital markets stood at Rs 9,435 crore.

Shrikant Chouhan, executive vice president, equity technical research at Kotak Securities Ltd noted that concerns of rising inflation and rising debt levels are keeping emerging markets suppressed.

"Amongst emerging markets South Korea and Taiwan saw highest month to date FPI outflows of $825 crore and $344 crore respectively. On the contrary, Indonesia saw month to date FPI inflows of $4.6 crore," Chouhan said.

FPI outflows is a temporary phenomenon as per  Harsh Jain, co-founder and COO at Groww.

The number of covid cases in the country is falling and vaccination rates are slowly climbing; and as the economy reopens, FPI investments will "dramatically climb," he said.
PTI
first published: May 23, 2021 03:06 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark