FPIs invest record ₹150K cr in Indian markets in 3 months, ₹68K in Dec1 min read . Updated: 03 Jan 2021, 11:25 AM IST
As per National Securities Depository data, overseas investors put in a net ₹62,016 crore into equities and ₹6,542 crore into the debt. For the equity segment, this is the highest quantum of money invested ever since the FPI data has been made available by the NSDL
For the third consecutive month, Foreign portfolio investors (FPIs) became the net buyer in the Indian markets by investing a total of ₹68,558 crore in December. Last month, overseas investors put in a net ₹62,016 crore into equities and ₹6,542 crore into the debt as per National Securities Depository (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."
Commenting on how this trend is affecting the markets overall, Nilesh Shah earlier in December mentioned Markets are seeing unexpected rise as flows (Retail & FPIs), fundamentals (Sept Results, Advance tax nos) and sentiments (low returns in debt, hope on budget) have come together.
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
Jain added that the vaccine success may bring more confidence in economic activity and the investment rally may continue in 2021.
(With inputs from agencies)