FPIs pump ₹26,505 crore in Indian equities in December, turn net buyers after 3 months; What led to trend reversal?
US Federal Reserve is done with raising key interest rates have triggered foreign fund inflows into emerging markets like India. FPIs have bought ₹26,505 crore worth of Indian equities and the total inflow stands at ₹30,852 crore as of December 8, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. The investment in cash market stands at ₹10,874 crore.
Also Read: FIIs pump over ₹9,000 crore in Indian equities this week, DIIs net sellers in 3 sessions: What's behind this trend? Analysts noted that the actual inflows by FPIs was caused by MSCI EM Index rebalancing, among others. ‘’As per NSDL data, the total inflows into India including investment through the primary market, through 8th December stands at a whopping ₹26,605 crore,'' said Dr. V K Vijayakumar.
FPIs were net sellers in August, September and October on a sharp spike in US bond yields amid ongoing 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 stocks for ₹83,422 crore through the exchanges.
FPI inflows into Indian equities during November stood at ₹9,001 crore, compared to over ₹39,000 crore worth of shares sold in September and October together, according to NSDL data. Taking into account debt, hybrid, debt-VRR, and equities, FPI inflows were at ₹24,546 crore during the month. "FPIs made a major comeback to India in December.
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