New Delhi: Owing to the global trade tensions, FPIs have pressed an exit button, routing Rs 3,207 crore in May so far. Reversing their three-month buying streak, foreign investors pulled out a net Rs 3,207 crore from the Indian capital markets in the first seven trading sessions of May amid the US-China trade tensions and uncertainty over the election results. Prior to this, foreign portfolio investors (FPI) poured in a net Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February in the domestic capital markets (both equity and debt).
From May 2 to 10, FPIs invested a net sum of Rs 1,344.72 crore in equities but pulled out a net Rs 4,552.20 crore from the debt market, taking the total net outflow to Rs 3,207.48 crore, latest depositories data showed. Foreign investors have been net buyers in the Indian markets for the past three months after central banks of various developed countries changed their stance on monetary policy, leading to improved global liquidity conditions. However, “the recent reversal of trend in the Indian capital markets can be attributed to the emerging discussions over US-China trade war and uncertainty over election outcome, among other factors,” said Harsh Jain, COO at Groww.in.
Adding to the market woes, nine of top-10 companies have lost whopping Rs 1.60 lakh cr in market valuation, with Reliance Industries Ltd being the worst hit. Tata Consultancy Services (TCS) was the lone gainer, adding Rs 1,144.48 crore to its market capitalisation (m-cap) to reach Rs 8,01,340.52 crore. RIL saw its valuation plunge Rs 99,212.9 crore. RIL also lost its status as the country’s most valued firm to TCS on Thursday.
HDFC Bank’s valuation eroded by Rs 19,634 crore and that of HDFC dropped Rs 13,573.5 crore. The m-cap of ICICI Bank dived Rs 10,974.8 crore and ITC’s tumbled Rs 7,232.6 crore. The valuation of Kotak Mahindra Bank Ltd diminished by Rs 4,409.41 crore and that of Infosys decreased by Rs 3,364.07 crore. HUL’s m-cap fell by Rs 1,233.88 crore and of SBI declined Rs 981.71 crore.
