Foreign Investors Make Strong Return to Indian Markets with Rs 24,400 Crore Inflow

Foreign investors have returned to Indian equity markets with a net purchase exceeding Rs 24,400 crore in early December. This marks a reversal from the selling trend seen in the previous months. The decisive inflow suggests renewed confidence in India's market outlook as 2023 concludes.

In a surprising turnaround, foreign investors have poured back into Indian equity markets, injecting a substantial Rs 24,400 crore in the first week of December. Data from the National Securities Depository Limited (NSDL) highlights this net inflow by Foreign Portfolio Investors (FPIs) between December 2 and December 6.

The peak single-day inflow occurred on December 6, when FPIs invested Rs 9,489 crore, marking the week's highest investment point. This significant purchasing wave contrasts starkly with the selling trend witnessed in October and November, where foreign investors had been steadily offloading their holdings.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "The shift of FPIs to buyers in December, after months of selling, has notably boosted market sentiment. Earlier in the year, FPIs sold Rs 113,858 crore worth of equities in October and Rs 39,315 crore in November. This strategic pivot suggests strong confidence in India's economic and market prospects."

The renewed activity among global investors serves as a testament to India's growing allure in the global equity landscape. As the year 2023 nears its end, foreign investment momentum is pivotal, hinting at a positive market sentiment shift following the recent US elections, and a receding dollar influence.

(With inputs from agencies.)