Wednesday, December 11, 2024
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FPIs have turned buyers in leading banks

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New Delhi, Dec 9:  FPIs have made a major comeback to India in December. Even though FPIs made an investment of Rs 9,000 crore in India in November, they were sellers for Rs 368 crore in the cash market. This has changed in December with big time buying in the cash market, SAID V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The cash market buying in the month through December 8 is Rs 10874 crore. But the actual inflows caused by MSCI EM Index rebalancing, among others, is very high.

As per NSDL data, the total inflows into India, including investment through the primary market, through December 8 stands at a whopping Rs 26,605 crore, he said.

The indication of political stability after the 2024 general elections, strong growth momentum in the Indian economy, inflation cooling off, steady decline in US bond yields and the correction in Brent crude have turned the situation in India’s favour.

Going forward, FPI inflows are likely to continue.

FPIs have turned buyers in leading banks where they have been sellers. Large caps in segments like IT, telecom, automobiles and capital goods are also witnessing buying. This trend is likely to continue, he said.

IANS

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