FPIs turn sharply positive in December pump Rs.57,313 crore in Indian equities

Foreign portfolio investors (FPIs) have sharply positive in December and finally having reversed their selling streak in November, emerging net buyers in the Indian stock market.

The inflow has intensified on strong global cues after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024. This led to a crash in US bond yields and triggered foreign fund inflows into emerging markets like India.

FPIs have bought Rs.57,313 crore worth of Indian equities and the total inflow stands at Rs. 77,388 crore as of December 22, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs heavily bought stocks in banking and IT segments, according to analysts.

FPIs were net sellers in August, September and October on a sharp spike in US bond yields amid ongoing geopolitical tensions in the Middle East. FPIs were net buyers till November 15, but reversed the selling trend and invested on November 15 and 16. During August, September October and till November 15, FPIs cumulatively sold stocks for Rs. 83,422 crore through the exchanges.

FPI inflows into Indian equities during November stood at Rs.9,001 crore, compared to over Rs. 39,000 crore worth of shares sold in September and October together, according to NSDL data. Taking into account debt, hybrid, debt-VRR, and equities, FPI inflows were at Rs. 24,546 crore during the month.