How has been the FII action in May? Are they still net sellers in the market?

While there has been net buying in equities, the FPIs continued to be net sellers when seen overall including debt. FPIs were net sellers to the tune of Rs.(-12,329) crore in the first 3 weeks of May 2020. During this period, FIIs infused Rs.9089 crore into equities but withdrew Rs.21,418 crore from debt on risks of higher fiscal deficits, corporate bond defaults and a weak rupee. The equity flows would have been negative had it not been for the block deal of Rs.25,000 crore in Hindustan Unilever sold by Glaxo, which was largely lapped by the FIIs. Otherwise, the overall FII selling in the first 3 weeks of May would have been closer to Rs.(-37,329) crore. FIIs had net sold Rs.6883 crore in April and a whopping Rs.61,973 crore in equities in Mar-20. The undertone of FPIs continues to be cautious on Indian assets.