NEW DELHI: Foreign investors made a strong comeback and infused Rs 24,453 crore in the Indian equity markets in the first week of the December, according to data from the National Securities Depository Limited (NSDL). The single largest investment came on December 6, with FPIs investing Rs 9,489 crores.
The FPIs investment in the December represents a complete shift from the previous two months, when foreign investors were net sellers. The substantial capital inflow indicates increasing confidence in India’s economic prospects.
“FIIs turning buyers in early December, in total reversal of their sustained selling strategy during the last two months, has altered the market sentiments. In October the total FIIs selling through exchanges was Rs 113858 crores. In November the amount declined to Rs 39315 crores. Including the purchases through the primary market, the total FIIs buying through 6th December stand at Rs 24453 crores (Source NSDL). This is a clear change in FII strategy in India. It can be argued that the stage of relentless FII selling is over” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Meanwhile, NSDL data shows FPIs sold equities worth Rs 21,612 crore in November, showing reduced selling compared to Rs 94,017 crore in October.
Earlier during June to September, FPIs invested Rs 26,565 crore, Rs 32,365 crore, Rs 7,320 crore, and Rs 57,724 crore respectively.