Foreign portfolio investors (FPIs) are sharply positive in December and finally reversed their selling streak in November, emerging as net buyers in the Indian stock market. The inflow intensified on strong global signals after the US Federal Reserve signaled the end of its tightening cycle and raised expectations of a rate cut in March 2024. This caused a crash in US bond yields and triggered foreign money flows into emerging markets such as India. .
FPIs bought ₹57,313 crore of Indian shares and the total inflow stands ₹77,388 crore as on December 22, taking into account debt, hybrid, debt-VRR and equities, according to National Securities Depository Ltd (NSDL) data. FPIs bought stocks in banking and IT segments heavily, according to analysts.
FPI activity in Indian markets
FPIs were net sellers in August, September and October on a sharp spike in US bond yields amid continued geopolitical tensions in the Middle East. FPIs were net buyers till November 15, but reversed the selling trend and invested on November 15 and 16. During August, September-October and till November 15, FPIs cumulatively sold shares for ₹83,422 crore through the exchanges.
FPI inflows into Indian stocks during November stood at ₹9,001 crore, compared to over ₹39,000 crore of shares sold in September and October combined, according to NSDL data. Considering debt, hybrid, debt-VRR and equities, FPI inflows were at ₹24,546 crore during the month.
Disclaimer: The views and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 23 Dec 2023, 16:43 IST