FPIs became buyers in major banks
New Delhi: FPIs have made a big comeback in India in December. Even though FPIs invested Rs 9,000 crore in India in November, they were sellers worth Rs 368 crore in the cash market. V.K. That said, this changed with large purchases in the cash market in December. Vijayakumar, chief investment strategist at Geojit Financial Services.
Purchasing in the cash market in the month till December 8 is Rs 10874 crore. But the actual flows caused by MSCI EM index rebalancing among others are much higher.
He said as per NSDL data, total investment in India, including investment through primary market, till December 8 is Rs 26,605 crore.
Signs of political stability after the 2024 general elections, strong growth momentum in the Indian economy, reduction in inflation, a steady decline in US bond yields and improvement in Brent crude have put the situation in India’s favor. FPI inflows are likely to continue going forward.
FPIs have become buyers in leading banks where they had been sellers. Buying is also being seen in large caps of segments like IT, Telecom, Automobile and Capital Goods. He said this trend is likely to continue.
