Foreign Portfolio Investors (FPIs) have invested a net amount of Rs 49,553 crore in Indian markets in November so far in the wake of high liquidity.
FPIs invested in 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. Foreign investors had brought in a net sum of Rs 22,033 crore.
Talking about what is driving the FPI investment in Indian markets, Harsh Jain, Co-founder, and COO at Groww told that high liquidity, coupled with improving global economic indicators and clarity about the US presidential election outcome, worked in favor of Indian markets.
Also, “with global trade improving and economies world over showing green shoots, investors are becoming more comfortable in investing in emerging markets like India,” he said.
Echoing his views, Rusmik Oza, Executive VP and head of fundamental research-PCG, Kotak Securities Ltd, said the (FPI) flows accelerated after the US election results as investors globally expect the dollar to weaken further in the 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.
Factors like a higher jump in earnings, faster recovery on the ground, and stable currency in India are also helping FPI inflows.