FPIS INVEST ₹30,385 CRORE IN EQUITIES SO FAR THIS MONTH

NEW DELHI: Foreign investors have been aggressively buying Indian equities in November, investing ₹30,385 crore this month so far, on stabilisation in rupee and resilience of the domestic economy compared to global counterparts.

However, going forward, buying by Foreign Portfolio Investors (FPIs) is unlikely to turn very aggressive as high valuations in India are a headwind, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Further, valuations in markets like China, South Korea and Taiwan are very attractive now and so more FPI money is likely to move to these markets, he added.

According to data with the depositories, FPIs invested a net sum of ₹30,385 crore in equities during November 1-18.

This came following a net outflow of just ₹8 crore last month 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.

So far this year, the total outflow by FPIs in equities stands at ₹1.4 lakh crore.

The latest spurt in net inflows can be attributed to the recent surge in equity markets, stability in Indian economy compared to its global counterparts and stabilisation in rupee, Morningstar India Associate Director - Manager Research Himanshu Srivastava said.