FPIs pump in Rs 17,818 crore in just four trading sessions of December

Overseas investors remained net buyers to the tune of Rs 17,818 crore in Indian markets in first four trading sessions of December amidst better than expected economic recovery around the world and positive sentiment on the back of various vaccine results.

As per depositories data, foreign portfolio investors (FPI) pumped in a net sum of Rs 16,520 crore into equities and Rs 1,298 crore in the debt segment during December 1-4.

This translated into a total net of Rs 17,818 crore during the period under review.

In November, the total net of FPIs stood at Rs 62,951 crore.

“The economies world over have continued to improve at a pace that is much better than what was expected and hence, Indian markets may continue to see this kind of an inflow,” Harsh Jain, co-founder and COO at Groww. said.

The announcements of various vaccine results is giving confidence to investors about the possible future of the markets, Jain added.

According to Himanshu Srivastava, associate director – manager research, Morningstar India, there has been “unprecedented interest” among FPIs towards emerging markets and India too has been benefiting from this trend.

The pace of net inflows increased considerably after the outcome of US presidential election. Besides, attractive valuation compared to the developed markets and weakness in the dollar has been supporting buying trend, he noted.

Commenting on future of investment, Vinod Nair, head of research at Geojit Financial Services, said that in the near-term, inflows can slowdown as FPIs will have to review the strategy of next year considering the fiscal and monetary policies of developed economies and vaccination plan.

“On a long-term basis, the trend is likely to be buoyant,” Nair added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link