In a key detail amid the lockdown caused
by COVID19, the People's Bank of China has bought a one per cent stake in
India's major debtor Housing Development Finance Corporation (HDFC). According
to the information given to BSE, China's central bank acquired about 1.75 crore
shares of HDFC in the March quarter. This development has come at a time when
HDFC shares have fallen drastically. HDFC shares have fallen by more than 25
per cent in the last one month due to the worldwide spread of coronavirus
infection. HDFC shares closed at Rs 1701.95 per share on the BSE on the last
day of the trading week on Friday.
After this share purchase, the share
of foreign portfolio investment in HDFC has increased to 70.88 per cent. The
Singapore government also holds a 3.23 per cent stake in it. People's Bank of
China has bought stakes in many companies around the world. It also includes
large companies such as BP PLC and Royal Dutch Shell PLC.
While the market took a deep dive in
March due to the havoc in the stock markets due to the havoc of Coronavirus,
financial mutual funds invested Rs 11,485 crore, the highest monthly inflow in
the past year. This is indicative of the fact that investors have turned their
back on the decline in the market and invested in mutual funds considered safe.
However, during this period, foreign investors (FIIs) withdrew a total of Rs
1.23 lakh crore from the Indian security and debt market, while domestic
institutional investors ie DIIs had a net investment of Rs 55,595 crore.
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