FPIs net buyers in November so far; pump in Rs 49,553 crore

New Delhi: Foreign portfolio investors (FPI) have pumped in a net sum of Rs 49,553 crore in Indian markets this month so far on back of high liquidity coupled with improving global indicators and clarity after the US presidential elections.

FPIs invested Rs 44,378 crore in equities and Rs 5,175 crore in the debt segment, taking the total net investment to Rs 49,553 crore between November 3-20.

In October, FPIs invested a net sum of Rs 22,033 crore.

According to Harsh Jain, co-founder and COO at Groww, high liquidity coupled with improving global economic indicators and clarity about the US presidential elections are driving the FPI investment.

In addition, "with global trade improving and economies world over showing green shoots, investors are becoming more comfortable in investing in emerging markets like India," he added.

Echoing the views, Rusmik Oza, executive VP-head of fundamental research-PCG, Kotak Securities Ltd, said the flows accelerated after the US election results as investors globally expect the dollar to weaken further in future.

"It is expected that the Federal Reserve and other Central Banks like ECB and BoE would have to take more monetary measures to combat the second wave of COVID. This would lead to more liquidity infusion into global markets," Oza added.

Making a comparison between other emerging markets, Rusmik Oza said FPI flows in South Korea and Taiwan are closer to what India has received.

"Interestingly, China after seeing very strong flows in the previous two months saw net outflows of USD 16.5 billion this month to date," Oza added.

Regarding future of FPI flows, he said expectations of a weaker dollar and high liquidity are likely to bring more inflows into emerging markets and India is one of the preferred markets in this space.