FPIs pump in ₹ 19,712 cr in Indian markets in November

At US$ 2.64 million (₹19,712 crore), FPIs were the net buyers in Indian markets during the month of November.

November 22, 2021

US$ 1.86 million (₹14,051 crore) was invested into equity and US$ 0.76 million (₹5,661 crore) in the debt segment.

The pattern was also observed during the previous month where FPIs were net sellers at US$ 1.67 million (₹12,437 crore).

Despite several challenges, India has been having excellent growth prospects according to experts.

It also continues to be an important and competitive investment destination in the long-term.

The month of November saw foreign portfolio investors (FPI) being the net buyers in Indian markets at US$ 2.64 million (₹19,712 crore) till now. Around US$ 1.86 million (₹14,051 crore) was invested into equity and US$ 0.76 million (₹5,661 crore) in the debt segment between November 1-18. The pattern was also observed during the previous month where FPIs were net sellers at US$ 1.67 million (₹12,437 crore). According to Himanshu Srivastava, associate director (manager research) at Morningstar India, India had excellent growth prospects despite intermittent and short-term challenges while continuing to be an important and competitive investment destination in the long-term. With the persistent uncertainties on both a global and domestic level, he asserts, the net flows during the week cannot be taken as a change in the trend. He also noted that this was possibly a tactical allocation by FPIs and that caution needs to be applied while watching the flow trends in the following weeks to better assess their investment pattern.

V K Vijayakumar, chief investment strategist at Geojit Financial Services, noted that FPIs have been sellers in banking and even in performing sectors like IT for the first half of November, and that most foreign brokerages have a sell call on India on concerns of stretched valuations. Upcoming markets, including India, owing to an anticipated higher quantum of tapering by the US Federal Reserve may receive reduced foreign investments, says Shrikant Chouhan, head (equity research-retail) at Kotak Securities.