Foreign Portfolio Investors (FPIs) remained net buyers for the second consecutive month in November, up by Rs 62,951 crore in Indian markets.
For the equity segment, this is the most money invested since the FPI data was made available by National Securities Store Limited.
According to depository data, FPI invested Rs 60,358 crore in equities and Rs 2,593 crore in debt segment, with a net investment of Rs 62,951 crore between November 3-27.
In October, FPIs were net buyers of Rs 22,033 crore.
Harsh Jain, co-founder and COO of Growth Markets, said that global investors are preferring to invest in emerging markets than developed markets.
He said similar trends were seen in other emerging markets like South Korea and Taiwan.
Jain continued, “FPI has invested largely in India’s top bluechips. A large part of the investment that has come is in the banking sector. Hence, the flow has been concentrated in a few stocks.”
Himanshu Srivastava, Associate Director – Manager, Morningstar India, said that “some uncertainties are behind us after the results of the US presidential election in November.”
Srivastava said attractive valuations and weakness in the dollar compared to developed markets also supported it.
Further added, the biggest challenge on the domestic front would be to bring down COVID-19 cases and bring the economy back on the growth path, he said.
Srivastava said that the macroeconomic scenario has improved, which so far ensures that FPI inflows are sustained.
He said that the continuation of the accommodative stance by the global central banks could ensure the flow of foreign investment in emerging markets including India.
(Only the headline and picture of this report have been reworked by Business Standard employees; the rest of the content is auto-generated from a syndicated feed.)