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Union Minister of State for Finance Anurag Thakur speaks as Union Finance Minister Nirmala Sitharaman wearing a face mask looks on, as he announce the government's economic package to fight the coronavirus pandemic. (PTI)
Union Minister of State for Finance Anurag Thakur speaks as Union Finance Minister Nirmala Sitharaman wearing a face mask looks on, as he announce the government's economic package to fight the coronavirus pandemic. (PTI)

FPI inflows in Indian equities highest among emerging markets: Anurag Thakur

  • Noting that global investors have pumped in 1.6 lakh crore in Indian equities in 2020, Anurag Thakur, Minister of State, Finance and Corporate Affairs, said that it's highest among the emerging markets. In fact, India is the only country that saw inflows from FIIs among all the emerging markets.

After the mutual fund sector applauded the contributions of foreign institutional investors in the Indian markets, the finance ministry too recognised global investors pumping money in the equities is one of the key reasons for the recent market rallies.

Noting that global investors have pumped in 1.6 lakh crore in Indian equities in 2020, Anurag Thakur, Minister of State, Finance and Corporate Affairs, said that it's highest among the emerging markets.

On Friday, the Finance Minister took to Twitter to say India is a reliable partner for the world. Indian equities received 1.6 lakh crore ($23 billion) from foreign institutional investors in 2020, the highest among emerging markets.

As per a graph posted along with the tweet, in 2020, India was the only country that had significant inflows from foreign investors, while other emerging markets saw major outflow this year.

As per National Securities Depository (NSDL) data, FPIs invested a record Rs150K crore in Indian markets in the last three months of 2020.

In December alone, the FPIs became the net buyer in the Indian markets by investing a total of 68,558 crore. Overseas investors put in a net 62,016 crore into equities and 6,542 crore into the debt as per NSDL data.

For the equity segment, this is the highest quantum of money invested ever since the FPI data has been made available by the NSDL. Meanwhile, experts suggest, this trend is directly aiding the overall market rally "something not seen in over five years".

In November, foreign investors had pumped in 60,358 crore in the Indian markets. Prior to this, in October, FPIs invested 22,033 crore in October.

"Foreign investors could be seen getting out of some bluechip stocks and entering the small and midcap space as bluechips have so far attracted a bulk of the investments and have therefore reached high valuations," Harsh Jain, co-founder and COO at Groww, said.

He further said that an incredible inflow of investors' money into India is being witnessed which is leading to the markets' rally -- "something not seen in over five years."

The COVID-19 outbreak ravaged lives and livelihoods on a global scale, shuttering businesses and jolting world equities. But amid all the gloom, Indian stock indices gave hope of returning to winning ways towards the latter part of the year.

The Sensex gained 15.7 per cent in a memorable year 2020, where the BSE benchmark saw both ruthless selling and massive buying. Markets witnessed volatile trends during the year, with the benchmark crashing to its one-year low of 25,638.9 on March 24, only to roar back to its record high of 47,896.97 on the last day of trade.

In the end, equity investors grew richer by 32.49 lakh crore this year on the back of smart returns in the stock market.

(With inputs from agencies)

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