Rs 4,000 crore a day! FIIs making it a December to remember for Nifty bulls
Sensex beyond the 71,000 mark and making 21,000 the new pincode for Nifty, FIIs (foreign institutional investors) have been pouring in over Rs 3,900 crore daily on an average in December, making the 30-pack index stronger by 4,000 points so far in the month.
NSDL data shows that in the first 10 days of the month, FIIs invested Rs 39,260 crore on Dalal Street. And now with the US Fed hinting at 3 rate cuts in 2024, the market could once again see a flood of foreign money chasing Indian stocks in the new year.
The sharp uptick in FII flows comes after November's Rs 9,000 crore inflow and non-stop selling in September and October months.
«This market has made a high despite the fact that we have yet to see significant FII inflows.
With the Fed changing its outlook, our sense is that too much money is going to chase a few good stocks, which is why one should stay invested in the market. Probably, better days are going to come even more,» said Pankaj Pandey, Head of Research at ICICIdirect.
Amit Sachdeva of HSBC Securities said FIIs tend to like size and liquidity and as the new year begins there could be a strong rebound in foreign inflows.
«We remain very bullish.
India is a key overweight market for HSBC and we continue to like India a lot,» Sachdeva said.
Besides the Fed factor, a sharp dip in the US 10-year bond yield to 3.95% is also a trigger for large capital flows to emerging markets like India. With China turning out to be a disappointment both in terms of returns as well as the unpredictability of policies, there is an inclination towards allocating more towards India than China.
For Jefferies' Chris Wood, his India portfolio is up 41.2% year-to-date in US dollar terms on a total-return basis while the China
