FPIs infuse Rs 9,000 cr in equities in Nov; inflow in debt at 6-yr high
FPIs again made a comeback in the Indian stock markets in November and pumped in Rs 9,000 crore amid fall in US treasury bond yields and the resilience of the domestic market. Additionally, Foreign Portfolio Investors (FPIs) made a net investment of Rs 14,860 crore in the debt market last month, making it the highest level in six years, data with the depositories showed.
Going forward, FPI response will be crucially determined by the market trend, which, in turn, will be influenced by the state election results, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
If the state election results turn out to be favorable for the ruling dispensation, the market will stage a rally, and overseas investors are unlikely to miss that rally by big selling, he added.
According to the data, FPIs made a net investment of Rs 9,000 crore in Indian equities in November.
This came after FPIs dumped Indian equities worth Rs 24,548 crore in October and Rs 14,767 crore in September.
Mcap of nine of top-10 most valued firms up Rs 1.30 lakh cr; Airtel, TCS biggest gainers
Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs 1.74 lakh crore during the period.
The latest inflow can be attributed to fluctuations in the US Treasury yields and crude oil prices. Last month, the market witnessed the remarkable listing of two IPOs — IREDA and Tata Tech — potentially indicating a positive trend for foreign investors, Bharat Dhawan, Managing Partner, Mazars in India, said.
«While the decline in US treasury bond yields could have prompted FPIs to turn their focus back to the Indian market for better returns, listing of IPOs
