InvestorQ : How have been the total foreign portfolio investments in November 2020 so far? Do they continue to repose faith in India?
Mahima Roy made post

How have been the total foreign portfolio investments in November 2020 so far? Do they continue to repose faith in India?

Answer
image
2 months ago
Follow

The positive sentiments with respect to foreign investors have sustained through November month and the trend that started in the last week of October has only got accentuated. Foreign Portfolio Investors or FPIs continued to pump money into Indian markets this week.

If you just take the first 3 weeks of the month of November, the FPIs have already pumped in Rs.49,553 crore into Indian market. That is quite a lot of money and let me put this in perspective. This compares admirably with Rs.35,000 crore infused into Indian markets between the months of April and October this year.

What is also significant is that FPIs have been buyers in equity and in debt so it looks like the negative real returns are not a problem any longer for the bond investors. If you look at the November data, FPIs invested Rs.44,378 crore into equities and Rs.5,175 crore into debt.

Of course, the sentiment shift began with the Biden victory. FPIs turned bullish on emerging markets like India after Biden turned out the frontrunner. This was later borne out by the actual election outcome, where Biden managed to get a clear edge over Trump.

But it is not just about Biden and there is an India story too. There have been other triggers that also favoured the Indian markets during this period. For example, the macros are showing an Indian economy back at pre-COVID levels in terms of IIP and GDP.

Quarterly results for Q2 proved to be a bottom line bumper even as the Sep-20 quarter results turned out much better than expected. The Stimulus 3.0 and MSCI revamp helped too.

0 Views