May sees second biggest FPI outflows from Indian stock market

May sees second biggest FPI outflows from Indian stock market

In March 2020, foreign investors net sold domestic stocks worth Rs 62,000 crore as the COVID-19 pandemic gripped the world.





Mumbai / June 01, 2022 / 08:36 AM IST





The incessant selling by foreign portfolio investors in India reached new heights in May as monthly net outflows touched Rs 45, 276 crore, the second biggest single-month outflow since March 2020, data on National Securities Depository Limited's website showed.

In March 2020, when the COVID-19 pandemic triggered a nation-wide lockdown, foreign investors net sold domestic stocks worth Rs 62,000 crore.

May also marks the eighth consecutive month of net selling from foreign investors in Indian stocks, also one of the longest ever streaks of selling seen on record.

The sharp selling from foreign investors saw the benchmark Nifty 50 and BSE-Sensex index fall more than 3 percent in the month, which made it the worst performance from the indices in May since 2012.

The selling from foreign investors comes amid rising bets of US Federal Reserve raising interest rates too aggressively to contain inflation and risking a recession in the US economy. Further, the ongoing war in Eastern Europe and lockdowns in China have exacerbated global supply chain issues.

In April, the