Foreign Portfolio Investors have turned net buyers in Indian stocks in the month of October. For the month of October, these funds have so far net bought to the tune of Rs 6,189 crores until Oct 18, 2020.
On the other hand domestic institutions have net sold in Indian stocks to the tune of Rs 7,347 crores.
FPI buying ans selling trend of the last few days (in crores)
|Date||Gross Purchases||Gross Sales||Net purchase/sale|
|Oct 12, 2020||Rs 6100||Rs 5485||Rs 615|
|Oct 13, 2020||Rs 5,797||Rs 4965||Rs 832|
|Oct 14, 2020||Rs 7151||Rs 6329||Rs 821|
|Oct 15, 2020||Rs 6544||Rs 7148||Rs -604|
|Oct 16, 2020||Rs 4605||Rs 5085||Rs -479|
Strong global cues
Strong global cues is one of the prime reasons for net purchases in Indian stocks. In fact, US indices like the Dow Jones are now a few per centage points away from hitting record highs.
The Sensex too has now crossed the 40,000 points mark and much of the gains seen from record lows is due to the rally in IT stocks like TCS and Infosys. Apart from this Reliance Industries is one stock that has helped propel the indices very close to record highs, from the March lows.
Foreign Portfolio Investors would continue to buy into Indian stocks, as long as global cues are strong. With the sharp rally in stocks, the risk to reward ratio for buying is now not too favourable.