InvestorQ : Why have the FIIs suddenly turned to become net buyers in the month of October?
vaishnavi mhatre made post

Why have the FIIs suddenly turned to become net buyers in the month of October?

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vidhya Laxmi answered.
4 weeks ago
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In fact, FIIs were sellers in the month of September but have turned around to again being net buyers in the month of October. To be precise, foreign portfolio investors or FPIs infused funds aggressively in the week bringing in more than $1 billion in just 5 trading sessions.

If you look at the month of October so far, FPIs infused a total sum of Rs.17,749 crore. While the equity segment saw inflows of Rs.15,642 crore, the debt segment also saw inflows to the tune of Rs.2107 crore during the month.

The debt segment is the good news as it turned positive for the first time in September and that has sustained in October too. This can be largely attributed to absence of further rate cuts, an accommodative monetary policy and a strong rupee.

Till now, many of the frontline results have shown two trends. Top line sales are back to pre-COVID levels and the profit damage has been curtailed by better cost efficiencies. The better than expected corporate results so far were instrumental in the resurgence in FPI flows.

There are some positive notes at the macro level too. Apart from the quarterly results, the RBI has laid ample stress via the MPC on sustaining the accommodative monetary stance. That has also revived FPI confidence in India as it promises growth in coming quarters.

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