FPIs log Rs 21,789 crore inflows in December so far, reversing months of outflows
Foreign portfolio investors (FPIs) recorded net equity inflows of Rs 21,789 crore in December so far, marking a significant reversal after months of heavy outflows. With this surge in December, FPIs have experienced a total net inflow of Rs 6,770 crore in 2024, compared to outflows of Rs 15,019 crore at the end of November.
This turnaround comes after heavy off-loading in domestic equities in the last two months, with net outflows of Rs 21,612 crore in November and Rs 94,017 crore in October.
In the first half of December, nearly 83% of FPI flows were concentrated in three sectors — financial services, IT, and real estate. These sectors attracted inflows of Rs 7,424 crore, Rs 6,754 crore, and Rs 4,689 crore, respectively. At the same time, FPIs sold Rs 5,337 crore worth of oil and gas stocks, Rs 1,823 crore of auto stocks, and Rs 1,655 crore of FMCG shares.
Despite these shifts, telecom and services, which had seen outflows in November, saw renewed interest in December, with inflows of Rs 627 crore and Rs 553 crore, respectively. Oil and gas remains the top sector for FPI outflows in 2024, with cumulative sales of Rs 50,851 crore, while financials have seen withdrawals nearing Rs 54,000 crore for the year.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented on the market volatility, and said, “the sudden change in FII strategy from buying to selling has impacted markets. In the early days of December, FIIs were consistent buyers, purchasing equity worth Rs 14,435 crore in the
