FPIs turn net buyers in Nov; invest ₹36,329 cr in equities
NEW DELHI: After pulling out money from Indian equities market in the past two months, FPIs made a strong come back in November with a net investment of ₹36,329 crore on weakening of the US dollar index and positivity about overall macroeconomic trends.
This was the third month (July, August and November) in this year when FPIs witnessed net inflows. Moreover, they started the month of December on a positive note.
The flow trajectory is expected to remain positive in December. However, some shift could be seen from expensive stocks to value stocks, said Anita Gandhi, director and head – institutional business at Arihant Capital.
India will get its fair share of Foreign Portfolio Investors (FPIs) money, however, the high valuation will be a deterrent, said VK Vijayakumar, chief investment strategist at Geojit
Financial Services, said.
As per the data with the depositories, FPIs invested a net sum of ₹36,329 crore in equities in November.
“The cooling US inflation, sluggish crude oil prices, decline in metals and freight rates and expectations of slower pace of rate hikes by the US Federal Reserve have contributed to the positive sentiment,” said Kaizad Hozdar, investment advisor, TrustPlutus Wealth (India).
Moreover, India has the best earnings growth outlook amongst the top five economies. That coupled with a weakening US dollar index, robust tax collections and high double-digit credit growth make India better positioned compared to other emerging economies, he added.
The second quarterly financial numbers were decent for banking and auto sectors, which are barometers of economic growth. This also resulted in decent positive flows by FPIs in equity markets, Gandhi further said.
The latest fund infusion came following a net outflow of just ₹8 crore in October and ₹7,624 crore in September. Prior to these outflows, FPIs were net buyers in August to the tune of ₹51,200 crore and nearly ₹5,000 crore in July. Before that, foreign investors were net sellers in equities for nine months in a row which started in October 2021 as dollar surged.
So far this year, the total outflow by FPIs in equities stood at ₹1.25 lakh crore.