FPIs pull out ₹7,622 crore from Indian markets in April so far amid rising Covid cases

The total net withdrawal between April 1-23 stood at ₹7,622 crore. (Bloomberg)Premium
The total net withdrawal between April 1-23 stood at ₹7,622 crore. (Bloomberg)
 1 min read . Updated: 25 Apr 2021, 11:45 AM IST Staff Writer

Amid a surge in Covid-19 cases and strict restrictions announced by several state government, overseas investors withdrew a net ₹7,622 crore from Indian markets in April so far.

The total net withdrawal between April 1-23 stood at ₹7,622 crore. According to the depositories data, FPIs pulled out ₹8,674 crore from equities, but invested ₹1,052 crore in the debt segment.

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''Markets remained under pressure for yet another week as rising COVID-19 cases nationwide and strict restrictions announced by several state governments dented sentiments,'' said Ajit Mishra, VP Research. Religare Broking. ''We do not see the volatility easing out in the coming week too, thanks to scheduled data and events.''

First, the monthly expiry of April month derivatives contracts will keep the traders on their toes. On the data front, core sector data will be unveiled on April 30. The recent proposal by the US president to raise capital gains tax has started showing its impact in US markets which may cascade to others in the coming week. Needless to say, the COVID-related updates will remain on the participants’ radar, he added.

Markets are showing tremendous strength this year so far but it’s too early to presume that we’re out of woods. ''We reiterate our view that the prevailing sideways bias in Nifty would end below 14,100 and it may slip towards the 13,800 zone. In the case of a rebound, 14,600 would act as a crucial hurdle. We feel it’s prudent to stay with defensive names and see how the markets pan out in the coming week,'' Mishra added.

FPIs had invested ₹17,304 crore in March, ₹23,663 crore in February and ₹14,649 crore in January.

(With inputs from PTI)

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