Foreign portfolio investors (FPIs) took a sharp U-turn and turned net buyers in the first week of December, snapping their robust two-month selling streak over global cues. D-Street experts believe the trend reversal is a clear strategy for foreign investors to bank on year-end profits in the Indian stock market.
According to the National Securities Depository Ltd (NSDL) data, FPIs invested ₹22,766 crore worth of Indian equities this month, and the net inflows stood at ₹34,318 crore as of December 13, taking into account debt, hybrid, debt-VRR, and equities. The total debt investment is ₹666 crore so far this month.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
“FIIs turning buyers in December after relentless selling in October and November has contributed to the recovery in the market from the November lows. FIIs have bought equity for ₹14435 crores through exchanges till 13th December.
The total buy figure including the exchange buying and buying through the ‘primary market and others category’ stood at ₹22765 crores as on 13th December. FII buying has triggered a rally in largecaps particularly in banking and IT.
Even though FIIs have turned buyers in December, they have been large sellers,too, on certain days. This indicates that at higher levels, they may again turn sellers since Indian valuations continue to be relatively high compared to other markets. Rising dollar is another concern which might prompt FIIs to sell at higher levels.”