Foreigners Sell Record Haul of Indian Assets Due to Coronavirus

Foreign investors sold a record $16bn of Indian stocks and bonds in March as the economic tumult caused by coronavirus prompted a flight from emerging markets, the Financial Times reported. The selling by overseas investors came during a dire month for India’s financial markets. The Bombay Stock Exchange’s Sensex index fell 23 per cent in March to its lowest level since 2017, while the rupee dropped to a record low of more than 76 to the dollar. Foreign investors sold Rs620bn ($8.2bn) of equities in March and Rs603bn in bonds, according to data from India’s securities depositories. The outflows during the month were larger than during the whole of 2008, the year of the global financial crisis. The Sensex fell a further 4 per cent on Wednesday. Investors sold out of India Inc as part of a broader rout in emerging markets including South Korea and Taiwan. Markets in the US and Europe also tumbled as the coronavirus pandemic spread, shutting down economies across the world. Read more