Foreign investors turner net sellers in March quarter and pulled out USD 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 USD 6.3 billion in three months ended December 2019.
FPIs were net buyers in January (USD 1.71 billion) and February (USD 265 million). They, however, went on a selling spree in March as they sold net assets worth USD 8.4 billion.
FPIs had started the quarter on a cautious note on account of brewing geopolitical tension between US and Iran and fast-changing trends in US-China trade situation. But they had gradually regained their risk appetite as these concerns started to wane, it said.
Such investors went on a buying spree in the Indian equity markets after the US and China signed a trade deal, thus putting the trade war between them on a pause.