NEW DELHI: Indicating returning confidence in the Indian economy following steadily recovering earnings and progress on the Covid-19 vaccine front, official data shows that foreign portfolio investors (FPI) remained net buyers in the Indian bourses for the second consecutive month in November.
According to market data, they pumped in a massive Rs 62,951 crore in Indian markets between November 3 and 27. For equities segment, this is the highest quantum of investment made by FPIs since such data has been made available by the National Securities Depository Ltd.
According to NSDL data, FPIs invested a net Rs 60,358 crore into equities and Rs 2,593 crore in debt, taking the total net investment to Rs 62,951 crore. In October, FPIs had become net buyers through a net investment of Rs 22,033 crore. According to market experts, investors have begun investing more in emerging markets such as India due to the much higher potential upside.
The noises over promising vaccine trials has also reduced the risk posed by emerging market economies. Inflows into other emerging markets like South Korea and Taiwan also show a similar trend. “FPIs have invested into top bluechips of India in a big manner. A bulk of the investment that has come in has been into the banking sector. So, the inflow has been concentrated in a few stocks,” Jain further said. said Harsh Jain, co-founder and COO at Groww.
According to Morningstar India, now that major uncertainties such as the US Presidential Election is now behind us, investors are beginning to ramp up bets. Attractive valuations compared to the developed markets and the weakness in the dollar is also supporting buying of Indian equities and other instruments experts add. Going forward, the biggest challenge on domestic front will be to bring down Covid-19 case numbers and get the economy back on the growth trajectory, it added.
Firms raise Rs 25,000 cr through IPOs in 2020 so far
High liquidity and robust interest from investors helped companies raise nearly Rs 25,000 crore through initial share-sales this year so far and 2021 is expected to be equally strong for the IPO market, PTI reported on Sunday. An analysis of data available with the stock exchanges shows that the 12 IPOs in 2020 so far raised around Rs 25,000 crore, significantly higher than Rs 12,362 crore mopped up through 16 initial share-sales in all of 2019.