Foreign portfolio investors (FPIs) started December on a cheerful note after finally having reversed their selling streak in November, emerging net buyers in the Indian stock market. The inflow has intensified on strong global cues after the US Federal Reserve signalled the end of its tightening cycle and raised expectations of a rate cut in March 2024. This led to a crash in US bond yields and triggered foreign fund inflows into emerging markets like India.
FPIs have bought ₹42,733 crore worth of Indian equities and the total inflow stands at ₹51,787 crore as of December 15, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL) data. FPIs heavily bought stocks in banking and IT segments, according to analysts.
“A major development in December, particularly after the state election results, is FPIs turning buyers. This trend has intensified after the Fed signalled the end of the tightening cycle and indicated possibly three rate cuts in 2024. This triggered a crash in US bond yields with the 10-year going below 4 per cent,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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Published: 16 Dec 2023, 04:51 PM IST