FPIs infuse Rs 378 cr into equities

New Delhi: Foreign Portfolio Investors (FPIs) have pared their bearish stance on Indian equities during November as they made a net investment of Rs378 crore on the sharp decline in US treasury bond yields.

This came after FPIs dumped Indian equities worth Rs24,548 crore in October and Rs14,767 crore in September, data with the depositories showed. Before the outflow, FPIs were incessantly buying Indian equities in the last six months from March to August and brought in Rs1.74 lakh crore during the period. Overall, the cumulative trend for 2023 remains healthy, with FPIs pouring in Rs96,340 crore so far this calendar year.

“On the way ahead, we think that improving risk appetite in the EM (emerging markets) and falling risk-free yields in the US will draw FPI flows towards India,” Hitesh Jain, Strategist, Institutional Equities Research at YES Securities India, said.

According to the data, FPIs made a net investment of Rs378.2 crore in Indian equities this month (till November 24). Notably, foreign investors were buyers on four days this month with a big buying of Rs2,625 crore on Friday.

“The better-than-expected decline in inflation in mid-October US has given the market confidence to assume that the Fed is done with a rate hike. Consequently, the US bond yields have declined sharply with the 10-year benchmark bond yield correcting from 5 per cent in mid-October to 4.40 per cent now. This has forced FPIs to slow down their selling,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.