Team News Riveting
Excess liquidity, attractive valuations and weakness in the US dollar drove the foreign investors to the Indian stock market with the highest-ever net inflow of about Rs 1.5 lakh crore in 2020.
The year 2020 marked the biggest outflow by foreign investors from debt markets since 2002, when bifurcation of net investment data became available.
The previous record outflow was in 2013, when FPIs pulled out a net sum of Rs 50,849 crore from debt markets. Also, an exodus to the tune of Rs 47,795 crore was seen from such instruments in 2018.
Betting big on the Indian Economy, the foreign portfolio investors (FPIs) have pumped a handsome sum of Rs 60,094 crore into Indian markets so far in the ongoing month of December, according to reports.
The investment so far till December 24 in the current month includes Rs 3,451 crore into debt markets and Rs 56,643 crore into the equities segment.
This gains significance as it comes at the backdrop of FPIs investing a whopping sum of Rs 62,951 crore into Indian equity markets in November, which was the highest-ever inflow of funds recorded ever in a single month.
The FPI investments have shown a preference towards sectors like information technology (IT), pharma, chemical and FMCG et cetera.
It should also be noted that the growing investor interest towards India comes amidst better than expected economic recovery and positive sentiments about vaccine development against COVID-19, both in India and the rest of the world.
