In May, foreign investors withdrew money from the domestic stock market due to the second wave of Corona. According to depositories data, Rs 1,730 crore was withdrawn from the Indian market in May. Earlier in April, investors had withdrawn Rs 9,435 crore. This includes debt and equity market withdrawals.
According to the data, foreign investors pulled out Rs 3,375.2 crore from the stock market from May 1 to May 28, but Rs 1,645.8 crore has been invested in the debt market. In this sense, investors have withdrawals of Rs 1,729.4 crore.
Morningstar India Associate Director Himanshu Srivastava said that the Indian stock market is showing signs of stabilization in the last two weeks after seeing withdrawals for 8 consecutive weeks.
Srikanth Chauhan, the executive vice-president, Kotak Securities, said that in May, foreign investors withdrew money mostly from emerging and Asian markets. This led to a withdrawal of $ 8.5 billion from the South Korean stock market and $ 3.13 billion from the Taiwan market
According to Himanshu Srivastava, the decline in the rates of corona infection in India and improvement in the overall condition is a positive sign. Also, the availability of vaccines in the country will increase till August. This will allow concessions in lockdowns and accelerate the pace of economic growth. The stock market will also get its support.
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