New Delhi: Foreign investors have sold heavily in the Indian stock market in the quarter ended in March. Nearly $ 5 billion (Rs 37,500 crore according to Indian currency) has been withdrawn from India-focused foreign funds and ETFs. Foreign investors invest in the Indian stock market through these funds and exchange-traded funds (ETFs).
Only $ 2.1 billion was sold from these funds in the first quarter ie December quarter. According to a Morningstar India report, the eighth consecutive quarter has been one in which sales in foreign funds have dominated. During the March quarter, $ 3.6 billion has been netted by foreign funds, while $ 1.4 billion has been withdrawn through foreign ETFs.
In fact, foreign investors are withdrawing their money to avoid risk due to coronavirus and lockdown. Morningstar has said, 'Even before the lockdown was announced, the atmosphere was not very inspiring. There was concern about the slowdown in economic growth and the earnings results of companies. Let us tell you that an offshore or foreign fund is one which is not in India but is invested in the Indian stock market by staying abroad. These are some of the major investment instruments through which foreign investors can invest in the Indian market.
Is flight booking really starting from June 1?
