FPIs rush to exit India, withdraw $6.4 billion amid Covid-19 uncertainty

Foreign investors turned net sellers in March quarter and pulled out $6.4 billion from the Indian equity markets largely due to the COVID-19 outbreak and ensuing risk-averse environment, a Morningstar report said.

In comparison, foreign portfolio investors (FPIs) bought net assets worth $6.3 billion in three months ended December 2019.

FPIs were net buyers in January ($1.71 billion) and February ($265 million). They, however, went on a selling spree in March as they sold net assets worth $8.4 billion.

The uncertainty over the gravity of the pandemic's impact on the global economy and financial markets worldwide triggered a flight to