In the first two weeks of December, the foreign investors have made a strong comeback with a net investment of Rs 22,766 crore. The move was driven by expectations of a rate cut by the US Federal Reserve.
This is a significant improvement as it comes after significant outflows in the preceding months.
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Data with the depositories showed that the Foreign Portfolio Investors (FPIs) pulled out a net Rs 21,612 crore in November and a massive Rs 94,017 crore in October.
September had marked a nine-month high for FPI inflows, with a net investment of Rs 57,724 crore, highlighting the volatility in foreign investment trends.
In 2024, the FPI investment has reached Rs 7,747 crore in 2024 so far.
FPIs invested Rs 4,814 crore in the debt general limit and pulled out Rs 666 crore from the debt
Voluntary Retention Route (VRR) during the period under review.
So far this year, FPIs have invested Rs 1.1 trillion in the debt market.
Experts believe that the rising dollar is a concern which might prompt FPIs to sell at higher levels.
The recent announcement by the Reserve Bank of India (RBI) to enhance liquidity by lowering the Cash Reserve Ratio (CRR) has boosted investors’ sentiment.
Drop in India’s Consumer Price Index (CPI) inflation to 5.48 per cent in November from 6.21 per cent in October has also fuelled investors’ sentiments.
