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.
FPIs were net sellers in Indian markets last month amid the uptrend in the US market and US bond yields, which was fueled by Republican Donald Trump’s victory in the US presidential elections and the US Federal Reserve’s interest rate cut verdict. However, the US Fed has clarified there is no hurry to cut rates.
FPI sell-off hit a record high in October amid ongoing geopolitical tensions in the Middle East and cheaper valuations in the Chinese stock market. FPI outflows recorded in October were the highest ever in a single month in Indian markets. October’s FPI outflow hit a 10-month high, the highest sell-off from the Indian market year-to-date (YTD).
According to the National Securities Depository Ltd (NSDL) data, FPIs invested ₹24, 454 crore worth of Indian equities this month, and the net inflows stood at ₹34772 crore as of December 6, taking into account debt, hybrid, debt-VRR, and equities. The total debt investment was ₹355 crore so far this month.