How has been the foreign investor (FII) action in Indian markets in May 2020? Has the selling subsided?

FPIs remained net sellers for the third successive month in May 2020 pulling out Rs.7366 crore from the Indian markets. The COVID-19 syndrome ensured that the risk off sentiments continued in India. The only good news was that the FPI infusion into equities was positive, largely backed by block deals in Hindustan Unilever, Bharti and Kotak Bank. Overall, FPIs infused net Rs.14,569 crore into equities and pulled out Rs.21,935 crore from debt segment in the month of May. This resulted in cumulative net outflow of Rs.7366 crore in May-20. This is a far improvement from the Rs.115,000 crore sold in March and Rs.15,403 crore sold in April 2020. From a global perspective, rising tensions between the US and China regarding the autonomy of Hong Kong and the national security law passed by Beijing could keep global investors cautious. FPI trades will still predicate on block deals.