As the coronavirus pandemic is triggering fears of a global recession, foreign investors have started rowing back from the Indian capital markets by withdrawing a massive over Rs 1 lakh crore in March after remaining net buyers for six consecutive months.
Foreign portfolio investors (FPI) have pulled out over Rs 1 lakh crore from the Indian capital markets in March so far amid heightened fears of a coronavirus-induced global recession. Experts believe, foreign investors are withdrawing from riskier assets and are opting for safe heavens like dollar-denominated asset classes and gold.
Overseas investors invested only Rs 6,554 crore in Indian markets on a net basis in February, as they adopted a cautious stance amid coronavirus scare, subdued economic data, and disappointing corporate earnings.
Budget 2020 announcement: Finance Minister Nirmala Sitharaman on Saturday proposed to increase the investment limit of FPIs in corporate bonds from 9 per cent to 15 per cent.
Markets watchdog Sebi on Thursday said certain overseas government agencies and their related entities will be exempted from clubbing of investment limit that is applicable for foreign portfolio investors.
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