With the latest inflows, FPIs have experienced a total net inflow of Rs 9,435 crore in 2024 so far, versus outflows of Rs 15,019 at the end of November.
This turnaround comes after heavy off-loading in domestic equities in the last two months, with net outflows of Rs 21,612 crore in November and Rs 94,017 crore in October.
Meanwhile, in September, FPIs bought domestic equities worth Rs 57,724 crore. While in August, they had purchased shares worth Rs 7,322 crore, which was down month-on-month from July when the total buying figures stood at Rs 32,359 crore.
In June, FPIs were net buyers at Rs 26,565 crore after remaining net sellers in April and May when they sold equities worth Rs 8,671 crore and Rs 25,586 crore, respectively.
In February and March they were net buyers at Rs 1,539 crore and Rs 35,098 crore after starting the year on a negative note in January when they offloaded shares worth Rs 25,744 crore.On Friday, the foreign institutional investors (FIIs) were net sellers at Rs 1,830.31 crore while the domestic institutional investors (DIIs) were net buyers at Rs 1,659.06 crore.December’s inflows highlight improving sentiment amid easing global uncertainties and attractive valuations in key sectors.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, observed a clear shift in FPI strategy. “FIIs turning buyers in early December, in a total reversal of their sustained selling strategy during the last two months, has altered the market sentiments… This is a clear change in FII strategy in India. It can be argued that the stage of relentless FII selling is over,” he said.
He added that this shift is reflected in stock price movements, especially in large-cap banking stocks, which remain fairly valued and are poised for growth. IT stocks are also expected to benefit as FII interest continues to grow in the sector.
This reversal in FPI activity could provide much-needed stability to Indian markets, which faced persistent volatility through 2024. Domestic institutional investors (DIIs) have been consistent buyers, but a sustained FPI comeback would strengthen the market’s growth trajectory.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
