December Witnesses Robust Investments from Foreign Players Amid BJP’s Victory in Three States, Boosting Confidence in Indian Markets

Foreign Portfolio Investors (FPIs) showed confidence in the Indian equity markets by injecting Rs 26,505 crore in the first six trading sessions of December. This positive trend followed a net investment of Rs 9,000 crore in October, marking a significant turnaround from the withdrawals of Rs 39,300 crore in August and September.

The data reveals that FPIs displayed renewed interest in leading banks, shifting from their previous selling stance. Additionally, they turned buyers in large-cap sectors such as information technology, telecom, automobiles, and capital goods.

In the bond market, there was an influx of Rs 5,506 crore during the reviewed period. This follows a robust inflow of Rs 14,860 crore in November and Rs 6,381 crore in October, indicating sustained interest in debt securities.

For the entire year, FPIs have made substantial investments, amounting to Rs 1.31 lakh crore in the equity markets and Rs 55,867 crore in the debt markets. The positive momentum is attributed to expectations of political stability after the BJP’s success in three major states and optimism surrounding India’s economic growth.