FPIs turn positive with net inflow of Rs.9,000 crore in Indian equities during November

The foreign portfolio investors (FPI) have turned net buyers in the Indian stock market in November after three consecutive months of abated selling.

The decline in the US treasury yields and softening of dollar amid rising bets that the US Federal Reserve is done with interest rate hike have acted as key catalysts for the foreign fund inflows into emerging markets like India.

The FPI inflows into Indian equities during the month of November stood at Rs.9,001 crore as against selling of over Rs.39,000 crore in September and October together, according to National Securities Depository Ltd (NSDL) data. Taking into account debt, hybrid, debt-VRR, and equities, FPI inflows were at Rs.24,546 crore during the month.

Meanwhile, on December 1, FPI inflows in Indian equities stood at Rs.9,744 crore, as per NSDL data.

The Indian stock market indices witnessed strong gains last week, with the benchmark Nifty 50 hitting a new record on Friday and the Sensex coming within kissing distance of its all-time high.

India’s stellar GDP growth in the second quarter and positive cues from state exit polls lifted market sentiment. India’s Q2 GDP grew 7.6%, significantly exceeding the expectations.

Both the benchmarks, Nifty 50 and Sensex posted their best month in 2023 in November, supported by the return of FPI inflows.

On Friday, the Sensex ended 492.75 points, or 0.74%, higher at 67,481.19, while the Nifty 50 rose 134.75 points, or 0.67%, to settle at 20,267.90.

Meanwhile, in November, 10 mainboard IPOs listed in India, of which 8 were listed with premiums. This year was a record year for the IPO market, the highest in 10 decades with optimistic market conditions and helped companies raise capital, he noted.