Foreign portfolio investors (FPIs) have been making record investments in Indian equities the last few weeks taking their exposure to a lifetime high of about ₹1.5-lakh crore in the eight months into the current fiscal year.
According to data from depositories, FPI investment in Indian equities touched ₹1,54,611 crore in this fiscal year till November 25, of which ₹58,694 crore came just this month.
Experts’ take
“FIIs made the highest monthly buying in November in the last two decades. This has helped the Nifty touch 13,000 levels,” said Hemang Jani, Head - Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services.
“The inflow increased considerably especially after the end of the elections in the US and weakness in the dollar index. Another major reason was the expected stimulus worth trillions of dollars from central banks to revive economies that are hit hard by the Covid-led lockdown,” Jani added.
Market veteran and Managing Director of Kotak Mahindra Asset Management Nilesh Shah had tweeted on Tuesday: “For the first time FPI buying in equities has crossed ₹50,000 crore in a month. And the month is not yet over.”
Prior to this, FPI inflow touched a historic high of ₹1,40,033 crore in FY13 followed by ₹1,11,333 crore in FY15.
The robust inflow of FPI investment also set the stock market soaring to a record high.
Broader market indices BSE Sensex and Nifty surged more than 70 per cent from the lows of March to close at a new high on Tuesday.
Nifty crossed the 13,000 mark for the first time to close at 13,055 points, while Sensex scaled a new high of 44,825 points before closing at 44,523.
“FPI inflows in November have totalled $6 billion, and are in line with inflows into South Korea and Taiwan, other similarly weighted countries in MSCI Emerging Market universe,” S Hariharan, Head - Sales Trading, Emkay Global Financial Services said.
On a calendar year basis, FPIs are net buyers in equities with a net inflow of Rs. 1,06,582 crore between January and November till date and net sellers of Indian debt with a net outflow of Rs. 1,07,289 crore during the comparable period.
On a calendar year basis, FPIs are net buyers in equities with a net inflow of ₹1,06,582 crore between January and November till date and net sellers of Indian debt with a net outflow of ₹1,07,289 crore in the same period.