InvestorQ : How has the FII investments been in the month of December? Has the trend of November continued?
vidhya Laxmi made post

How has the FII investments been in the month of December? Has the trend of November continued?

Answer
image
sarah Leo answered.
7 months ago
Follow

Every since the US voted in favour of Biden, there has been a risk-on move in favour of the emerging markets and India has been one of the key beneficiaries of this trend. Recovery in Indian earnings, GDP and the stimulus package also helped along the way as FPIs were back in droves into India.

For the first four trading sessions of December 2020, the foreign portfolio investors or FPIs pumped in Rs.17,818 crore into Indian markets. In fact, the FPIs net bought Rs.16,520 crore of equities and also infused Rs.1298 crore into Indian debt paper in December.

It is gratifying that the trend set by November has continued in the first week of December, although we may have to wait for more affirmations in the next few weeks when FPIs normally go into hibernation around the year end to protect market gains.

FIIs investing in India got a morale booster after the GDP contraction for Sep-20 quarter was much lower than expected. In addition, the foreign investors were also excited by the RBI maintaining its accommodative stance and also upgrading its estimate for full year GDP.

In the last 2 months, there has been a visible risk-on shift in FPI investing and while the flows have been across all EMs, India has specifically been a major port of call as a market offering tremendous prospects at attractive valuations. Nifty gained 14% in Nov-20.

3 Views