Foreign portfolio invests around $3.9 billion in Nov |
Foreign portfolio investors are coming back to Indian equity markets and have rediscovered their liking for the country as they made a net investment of $3.9 billion in November in the hope of an end to the aggressive rate hikes, and positivity about overall macroeconomic trends. According to experts, after remaining net sellers in August and September, Foreign Portfolio Investors are unlikely to be major sellers now. Rising expectations of aggressive rate hike cycles nearing an end on a relatively easing inflationary curve, better than expected US macroeconomics data, and resilience of the Indian economy compared to global counterparts are also driving FPI inflows. According to data available with the depositories, FPIs invested a net sum of $3.9 billion in equities during November 1-25. In August, FPIs were net buyers to the tune of $6.3 billion and they purchased equities worth nearly $612 million in July. Prior to this positive trend, FPIs remained net sellers for nine straight months starting October 2021 amid a continuous rise in the dollar. Going ahead, FPI flows are expected to remain volatile in the near term given the geo-political concerns. So far this year, the total outflow by FPIs in equities stood at $167.7 billion.
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