MUMBAI : Around $15 billion foreign money was taken out of Indian markets in equity and debt in March, making it the highest-ever sell off by foreign institutional investors in a month.
Investors rushed to dump equities typically considered risky assets as Covid-19 spread across geographies, while the 21-day nationwide lockdown in India added to the concerns of economic disruption.
The panic sell-off by foreign institutional investors (FIIs) led to massive liquidity outflow from domestic markets, dragging benchmark indices down by more than 25% in March.
FIIs sold Indian shares worth $7.54 billion, while another $7.36 billion was sold in debt instruments in March. In 2020 so far, FIIs are net sellers of $14.69 billion, the highest annual