Foreign investors pare holdings of Rs 6000 crore ahead of Budget

With 12% surge in VIX over the week, traders bracing for volatility

Foreign portfolio investors (FPIs), key drivers of the bourses, have lightened their holdings ahead of the Budget to be presented on Saturday. In the previous five sessions, they had liquidated shares worth nearly Rs 6,000 crore. A large part of the sell-off can be attributed to the outbreak of the Coronavirus.

Market players say the possibility of savvy investors taking money off the table ahead of the Budget cannot be ruled out. 

On Friday, FPIs sold shares worth Rs 4,179 crore, the highest single-day selloff in more than two years.

The India VIX, a barometer for market volatility, shot up 12 per cent