FPIs turn net buyers in Nov, pump in Rs 5,319 crore in Indian capital markets
Foreign investors pumped in a net Rs 1,400 crore into equities and Rs 3,919 crore into the debt segment between November 1-26, according to depositories data.
- Nov 28, 2021,
- Updated Nov 28, 2021 1:45 PM IST
Foreign Portfolio Investors (FPI) have infused a net sum of Rs 5,319 crore in the Indian capital markets in the month of November so far despite a massive correction witnessed in equities over the last fortnight.
The FPIs were net sellers in the month of October to the tune of Rs 12,437 crore. Foreign investors pumped in a net Rs 1,400 crore into equities and Rs 3,919 crore into the debt segment between November 1-26, according to depositories data.
This infusion translated into a total net investment of Rs 5,319 crore. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the FPIs have been major sellers in banking stocks since they have been holding a large quantity of this segment. "Sustained selling has made banking stocks attractive from the valuation perspective," he told PTI.
Also Read: October sales by FPIs highest since March 2020
Vijayakumar further noted that sharp correction in the market on 26th November has been mainly triggered by concerns arising out of the new strain of the virus spotted in South Africa, Botswana and Hong Kong.
"Despite recent correction, the markets continue to be at elevated levels and hence FPIs would have booked profits," said Himanshu Srivastava, Associate Director - Manager Research, Morningstar India.
Trend reversal on a weekly basis has become a norm with respect to FPI flows in the Indian debt markets, he added. FPIs would be closely watching the spread of the new coronavirus variant and its possible impact on the growth globally.
Also Read: Should you be worried about the Sensex fall? Here's what Kotak's Nilesh Shah has to say
Higher valuation is also a concern that may continue to trigger profit booking at regular intervals, he said.
"Future of FPI flows is expected to remain volatile given key events such as upcoming state elections, expectation of rise in interest rates and concerns a new Covid variant will prompt fresh mobility restrictions, hindering economic recovery," said Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities.
Foreign Portfolio Investors (FPI) have infused a net sum of Rs 5,319 crore in the Indian capital markets in the month of November so far despite a massive correction witnessed in equities over the last fortnight.
The FPIs were net sellers in the month of October to the tune of Rs 12,437 crore. Foreign investors pumped in a net Rs 1,400 crore into equities and Rs 3,919 crore into the debt segment between November 1-26, according to depositories data.
This infusion translated into a total net investment of Rs 5,319 crore. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the FPIs have been major sellers in banking stocks since they have been holding a large quantity of this segment. "Sustained selling has made banking stocks attractive from the valuation perspective," he told PTI.
Also Read: October sales by FPIs highest since March 2020
Vijayakumar further noted that sharp correction in the market on 26th November has been mainly triggered by concerns arising out of the new strain of the virus spotted in South Africa, Botswana and Hong Kong.
"Despite recent correction, the markets continue to be at elevated levels and hence FPIs would have booked profits," said Himanshu Srivastava, Associate Director - Manager Research, Morningstar India.
Trend reversal on a weekly basis has become a norm with respect to FPI flows in the Indian debt markets, he added. FPIs would be closely watching the spread of the new coronavirus variant and its possible impact on the growth globally.
Also Read: Should you be worried about the Sensex fall? Here's what Kotak's Nilesh Shah has to say
Higher valuation is also a concern that may continue to trigger profit booking at regular intervals, he said.
"Future of FPI flows is expected to remain volatile given key events such as upcoming state elections, expectation of rise in interest rates and concerns a new Covid variant will prompt fresh mobility restrictions, hindering economic recovery," said Shrikant Chouhan, Head - Equity Research (Retail), Kotak Securities.