Indian The stock market has witnessed considerable growth this year. Major indices broke their own records several times in the month of December. A major reason behind this surge is the bumper investment by foreign portfolio investors i.e. FPI. FPIs have been net buyers in the Indian stock market this year. After three months of selling stopped in November, there was a sharp jump in FPI inflows in December. The confidence of foreign investors has increased significantly due to signs of stopping the increase in interest rates by the US Federal Reserve and expectations of interest rate cut in March 2024. In such a situation, he has increased his investment in Indian markets. The biggest impact of expectations of interest rate cuts was that US bond yields fell sharply. As a result, investment by foreign funds in emerging markets like India has increased.
FPI investment in Indian markets
FPIs were net sellers in August, September and October due to a sharp rise in US bond yields amid heightened global uncertainty amid the Ukraine-Russia war and ongoing geopolitical tensions in the Middle East. But later he reversed the selling trend and invested on 15 and 16 November. According to NSDL data, through August, September, October and November 15, FPIs sold shares worth a total of ₹83,422 crore. FPI inflows into Indian equities stood at ₹9,001 crore during November. Whereas shares worth more than Rs 39,000 crore were sold in September and October.
Purchase of Rs 66,134 crore in December
In the month of December, FPIs have made huge purchases in the Indian markets. FPI inflow has been the highest in December. In December, FPIs made purchases worth Rs 66,134 crore. In this way, in the year 2023, FPIs have invested a total of Rs 1.65 lakh crore in the Indian stock market. In the year 2022, FPI had withdrawn Rs 1.21 lakh crore.
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