FPIs pump ₹22,766 crore in Indian equities; Will the inflows continue in December? Experts weigh in | Stock Market News
Source: Live Mint
Foreign portfolio investors (FPIs) took a sharp U-turn and turned net buyers in the first week of December, snapping their robust two-month selling streak over global cues. D-Street experts believe the trend reversal is a clear strategy for foreign investors to bank on year-end profits in the Indian stock market.
According to the National Securities Depository Ltd (NSDL) data, FPIs invested ₹22,766 crore worth of Indian equities this month, and the net inflows stood at ₹34,318 crore as of December 13, taking into account debt, hybrid, debt-VRR, and equities. The total debt investment is ₹666 crore so far this month.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
“FIIs turning buyers in December after relentless selling in October and November has contributed to the recovery in the market from the November lows. FIIs have bought equity for ₹14435 crores through exchanges till 13th December.
The total buy figure including the exchange buying and buying through the ‘primary market and others category’ stood at ₹22765 crores as on 13th December. FII buying has triggered a rally in largecaps particularly in banking and IT.
Even though FIIs have turned buyers in December, they have been large sellers,too, on certain days. This indicates that at higher levels, they may again turn sellers since Indian valuations continue to be relatively high compared to other markets. Rising dollar is another concern which might prompt FIIs to sell at higher levels.”
FII selling in November was lower than that of October, which can be partly attributed to the reduced valuations caused by the market correction. However, market analysts noted that despite the sell-off in equities, the trend of FII buying through the primary market continued in November.
In November FIIs bought stocks for ₹17,704 crore through the primary market. “If we take the period up to November 29th 2024 the total FII selling for the year stands at ₹1,18,620 crore. During this period FIIs bought equity for ₹1,03,601 crore through the primary market. The reason for this dichotomy is the high valuations in the secondary market and the reasonable valuations in the primary market,” said analysts at Geojit Financial Services.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
