FPIs Turn Net Buyers Last Week Despite Market Crash; Investment in December, YTD?
By Malvika Gurung
Investing.com — Foreign portfolio investors (FPIs) have turned into net buyers so far in December despite the high market volatility in the month, leading to a correction amid downcast global cues including a resurgence of Covid cases in many countries, along with central banks globally sticking to their policies in a battle against high inflation, and fears of the US economy tripping into recession.
The week-ending Dec 23 witnessed the worst week for benchmark indices in six months as and declined 2.5% each, with the latter ending below the key psychological mark of 60,000 on Friday.
Despite the wide sell-off, FPIs invested a little over Rs 1,000 crore in the domestic market last week, compared to a net inflow of Rs 6,055 crore in the week prior.
So far in December, FPIs have invested a net Rs 11,557 crore in Indian shares, following a net inflow of Rs 36,200 crore in November and a net outflow of Rs 8 crore in October, as per NSDL data.
Compared to other emerging markets like South Korea, Thailand, Indonesia, Taiwan and the Philippines, FPIs have turned net buyers in India so far this month.
So far in 2022, foreign investors have debited a total of Rs 1.21 lakh crore from Dalal Street. In December, they pulled out Rs 2,900 crore from debt markets.