FPIs go bullish again on buying equities in Indian market
As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week.
Foreign Portfolio Investors (FPIs) turn out net sellers in Indian equities this week with a net withdrawal of Rs 976 crore. The development comes amid a strengthening US dollar and steady rise in US 10-year bond yields, impacting investor sentiment.
FPIs began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions between December 16-20.
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As per the data from National Securities Depository Limited, the trend reversed in the latter half of the week, with FPIs offloading equities worth over Rs 4,102 crore in the subsequent three sessions. This resulted in an overall net outflow of Rs 976 crore during the week.
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The FPIs have infused Rs 21,789 crore into Indian equities so far this month, reflecting continued confidence in India’s economic growth potential and its resilient markets.
So far in 2024, FPI investment has reached Rs 6,770 crore.
It has been observed that the FPI selling has brought down the prices of certain large-cap segments, such as banking, making valuations more attractive. Investors can take advantage of this market downturn to invest in quality large caps.
As per the data, earlier in November, FPIs pulled out a net Rs 21,612 crore and a massive Rs 94,017 crore in October, the worst monthly outflow on record.
September had marked a nine-month high for FPI inflows, with a net investment of Rs 57,724 crore, highlighting the volatility in foreign investment trends.
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