Foreign investors have staged a strong comeback to Indian equities with a net investment of Rs 24,454 crore in the first week of December.
After heavy selling in the past two months, the comeback is amid stabilising global conditions and expectations of potential US Federal Reserve rate cuts.
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With the latest inflow, FPI investments have reached Rs 9,435 crore in 2024 so far.
According to the data with the depositories, FPIs have made a net investment of Rs 24,454 crore till December 6.
The foreign portfolio investors (FPIs) have pulled out a net Rs 21,612 crore in November and a massive Rs 94,017 crore in October – the worst monthly outflow on record.
Interestingly, 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.
FPIs pulled out Rs 142 crore in the debt general limit and invested Rs 355 crore in the debt Voluntary Retention Route (VRR) during the period under review.
In June, July, August, and September, they bought stocks worth Rs 26,565 crore, Rs 32,365 crore, Rs 7,320 crore, and Rs 57,724 crore, respectively.
Amid the recent uptick in the IT sector performance, anticipations are high that the IT sector is poised to perform well and attract increased FII interest.
Experts opined that the uncertainty over Chinese equities on the back of proposed tariffs by US and other several nations could have prompted FPIs to look back at Indian equities.
