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"FPIs made a major comeback to India in December. Even though FPIs made an investment of Rs 9000 crores in India in November, they were sellers for Rs 368 crores in the cash market. This has changed in December with big time buying in the cash market.
The cash market buying in December through 8th is Rs 10874 crores. 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 8th December stands at a whopping Rs 26605 crores. ( Source NSDL)
The indication of political stability after the 2024 General elections, strong growth momentum in the Indian economy, inflation cooling off, steady decline in U.S. 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."

 

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