December 16, 2024
New Delhi, India
FPI
Foreign Portfolio Investors (FPIs) reversed their selling streak, infusing ₹22,765 crore into Indian equities in December, according to depository data. This sharp turnaround has lifted market sentiment, fueling gains in equity benchmarks.
- Key Data Highlights:
- December inflows (till December 13): ₹22,765 crore.
- Equity-specific investments: ₹14,435 crore.
- Total FPI activity, including debt and hybrid: Net inflows of ₹34,318 crore.
- Debt outflows: ₹666 crore.
This recovery contrasts with FPI outflows of ₹21,612 crore in November and a record-breaking ₹94,017 crore in October, driven by geopolitical tensions and global market trends.
Reasons Behind the FPI Rebound
- Improved Domestic Indicators:
- Better corporate earnings.
- Reserve Bank of India’s CRR cut.
- Global Factors:
- Expectations of potential U.S. Federal Reserve rate cuts.
- Stabilization in geopolitical concerns.
- IPO Investments:
- Continued FPI interest in primary markets.
- ₹8,330 crore invested via IPOs in December.
Mixed FPI Sentiment
Despite the December buying spree, FPIs remain cautious, evidenced by sporadic selling, such as ₹3,560 crore offloaded on December 12. Analysts attribute this to selective profit-booking and sector-specific strategies.
Market Experts Weigh In
D-Street analysts note FPIs’ strategic shift, particularly in large-cap banking stocks, reflecting confidence in India’s long-term growth. If December’s inflows persist, this would mark the second consecutive year of net positive FPI investments in Indian equities.
While FPIs’ December investments signal renewed optimism, cautious trading patterns underline the need for continued market vigilance. Stay tuned for updates on FPI trends and market movements.
Disclaimer:
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