Foreign Investors net buyers of Rs 4500 crore in December, till now

12 Dec 2022 , 08:31 AM

Foreign investors maintained their positive momentum after investing over Rs36,200 crore in the Indian equity markets last month and have bought net Rs 4,500 crore so far in December, primarily as a result of the decrease in the dollar index.

However, due to their cautious position in anticipation of the US Federal Reserve’s interest rate decision, foreign portfolio investors (FPIs) changed from buyers to sellers in the last four trading sessions, withdrawing Rs3,300 crore.

Data from the depositories show that between December 1 and 9, FPIs made a net investment of Rs 4,500 crore in stocks.

This followed a net investment of Rs36,239 crore in November, largely as a result of the US dollar index’s decline and optimism on general macroeconomic trends.

Prior to this, foreign investors withdrew Rs 8 crore and Rs 7,624 crore in October and September, respectively.

FPIs turned sellers recently despite continuing to buy in early December. The main driver of inflows was the drop in the dollar index to below 105.

The Federal Open Market Committee (FOMC) will meet for the last time this year on December 13 and 14.

Additionally, Indian markets are currently trading at record highs. FPIs may have recorded gains as a result of this.

In addition to investing in stocks, foreign investors contributed a net amount of Rs2,467 crore to the debt market during the time period under consideration.

Overall, this month’s FPI flows have been negative in emerging nations like the Philippines, South Korea, Taiwan, Thailand, and Indonesia.

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