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Below the Quote on FPI from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

"The selling spree by FIIs seen in October and November has declined in December. There has been occasional buying by FIIs in early December but they turned sellers again, though not on a sustained basis like in October and November. For December, through 27th FIIs have sold equity for Rs 656 crores only through the exchanges.An important characteristic about FII investment is that they have been consistent investors of equity through the primary market. In December through 27th FIIs invested Rs 17331 crores through the primary market.
 
This trend of selling through the exchanges and buying through the primary market is discernible in the year-long trend in 2024. For 2024 till 27th December, FIIs sold equity for Rs 119277 crores through the exchanges. In contrast to this selling trend they invested Rs 120932 crores through the primary market. This means FIIs are net investors in India so far this year. The selling through exchanges is mainly due to the high valuations and investing through the primary market is mainly due to the fair valuations.
 
In the debt market FIIs have invested Rs 112409 crores so far this year.(All data from NSDL)
 
In early 2025 FIIs may again turn sellers into equity since the dollar has been appreciating (dollar index is above 108) and the US 10-year bond yields are attractive at around 4.4%. FIIs will turn buyers in India when there are indications of growth and earnings recovery."

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