FPIs were net buyers of Rs 36,329 crore of Indian equities in November

5 Dec 2022 , 08:02 AM

FPIs made a significant comeback in November with a net investment of Rs 36,329 crore after withdrawing funds from the Indian equity market in the previous two months due to a dropping US dollar index and optimism regarding general macroeconomic trends.

This was the third month this year–July, August, and November–that FPIs experienced net inflows. They also had a good start to the month of December.

Data kept by the depositories shows that in November, FPIs made a net investment of Rs36,329 crore in stocks.

According to news reports, among the top five economies, India’s projection for earnings growth is the strongest. In addition to strong tax collections and significant double-digit credit growth, these factors put India in a better position than other emerging countries.

Additionally, the banking and car sectors’ second-quarter financial results, which serve as indicators of economic expansion, were respectable. Additionally, this led to FPIs making positive flows in the equities markets.

Following a net outflow of only Rs8 crore in October and Rs7,624 crore in September, the most recent money influx occurred.

FPIs were net buyers in August to the tune of Rs51,200 crore and roughly Rs5,000 crore in July prior to these outflows. Prior to that, due to the rising dollar, foreign investors had been net sellers of Indian stocks for nine months in a row beginning in October of the previous year.

FPIs have sold a total of Rs1.25 lakh crore worth of stocks so far this year.

FPI purchasing was observed in the financial services, IT, auto, FMCG, capital goods, and telecom industries.

On the other hand, the statistics showed that throughout the examined period, foreign investors withdrew close to Rs1,637 crore from the debt market.

International powerhouses like the US, UK, and Canada are raising interest rates. While rates were rising in India as well, they did so more quickly in the west, which made interest rate arbitrage less profitable. As a result, there has been some exodus from the debt market.

Aside from India, FPI flows this month have been favourable in emerging markets like the Philippines, South Korea, Taiwan, Thailand, and Indonesia.

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