FPI Data: FPI stopped selling in November, bought shares worth Rs 9000 crore so far

After two consecutive months of withdrawal by Foreign Portfolio Investors (FPIs), now in this month i.e. November, FPIs have made purchases worth Rs 9000 crore.

FPIs have made this investment in the market amid the decline in US treasury bond yields and the flexibility of the domestic market. Apart from this, in the last month i.e. October, FPIs had made a net investment of Rs 14,860 crore in the debt market.

"Going forward, the FPI reaction will be significantly determined by the market trend, which in turn will be influenced by the state election outcome," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

FPIs had sold equity worth Rs 24,548 crore in October and Rs 14,767 crore in September. However, in the previous 6 months (March to August), FPIs had purchased equity worth Rs 1.74 lakh crore.

Bharat Dhawan, managing partner, Mazars in India, said, “The latest inflows can be attributed to fluctuations in US Treasury yields and crude oil prices. Last month, the market witnessed two IPOs – IREDA and Tata Tech. "Notable listings of - were observed - potentially indicating positive trends for foreign investors."

Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India Pvt Ltd, said, “The fall in US treasury bond yields may have prompted FPIs to focus their attention on the Indian market for better returns, given the IPO listings in foreign markets. “Investors may also have been bought back.”

So far in this calendar year, FPIs have invested Rs 1.15 lakh crore. The debt market attracted Rs 14,860 crore in November.