Foreign institutional investors (FIIs) turned net buyers for the first time in 2020 in May pumping in Rs 13,914.49 crore in the cash segment of the Indian market.
The economic disruption led by the COVID-19 pandemic coupled with an already slowing economy kept overseas investors on the sidelines for the first four months of the current calendar. However, after the wild swings of March and April, consolidation in the month of May seems to have reignited foreign interest in the Indian market.
In May, the Nifty50 fell 2.84 percent though broader market outperformed the frontliners as Nifty Midcap index and smallcap index fell 1.7 percent and 1.84 percent, respectively, suggesting a shift in investor sentiment.
Despite an otherwise gloomy month for the equities and capital market in general, overseas money once again returned to the Indian markets in May primarily driven by the gradual reopening of economies around the world, cheap valuations and a comparatively sharp run-up in other markets.