FPIs reverse selling trend; invest ₹378 crore in equities in November
₹378 crore on the sharp decline in US treasury bond yields. This came after FPIs dumped Indian equities worth ₹24,548 crore in October and ₹14,767 crore in September, data with the depositories showed. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in ₹1.74 lakh crore during the period.
Overall, the cumulative trend for 2023 remains healthy, with FPIs pouring in ₹96,340 crore so far this calendar year. Also Read: FPI debt inflows at 26-month high in Nov on Fed rate pause "On the way ahead, we think that improving risk appetite in the EM (emerging markets) and falling risk-free yields in the US will draw FPI flows towards India," Hitesh Jain, Strategist, Institutional Equities Research at YES Securities India, said. According to the data, FPIs made a net investment of ₹378.2 crore in Indian equities this month (till November 24).
Notably, foreign investors were buyers on four days this month with a big buying of ₹2,625 crore on Friday. "The better-than-expected decline in inflation in mid-October US has given the market confidence to assume that the Fed is done with a rate hike. Consequently, the US bond yields have declined sharply with the 10-year benchmark bond yield correcting from 5 per cent in mid-October to 4.40 per cent now.
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