Foreign portfolio investors (FPIs) remained net buyers for the third month in a row by investing Rs 68,558 crore in Indian markets as global investors continued betting on emerging markets.
As per depositories data, overseas investors put in a net Rs 62,016 crore into equities and Rs 6,542 crore into the debt in December 2020. The total net investment during the month stood at Rs 68,558 crore. Prior to this, FPIs were net buyers in October and November as well and invested Rs 22,033 crore and Rs 62,951 crore, respectively.
“Foreign investors could be seen getting out of some bluechip stocks and entering the small and midcap space as bluechips have so far attracted a bulk of the investments and have therefore reached high valuations,” Harsh Jain, co-founder and COO at Groww, said. He said an incredible inflow of investors’ money into India is being witnessed which is leading to the markets’ rally “something not seen in over five years.”
Jain added the vaccine success may bring more confidence in economic activity and the investment rally may continue in 2021.