Foreign portfolio investors (FPI) have pumped in a net sum of Rs 49,553 crore in Indian markets this month so far on the back of high liquidity coupled with improving global indicators, positive development on COVID-19 vaccine and clarity after the US presidential elections.
Of the total net investment of Rs 49,553 crore between 3 and 20 November, Rs 44,378 crore was invested in equities and Rs 5,175 crore in the debt segment.
In October, FPIs invested a net sum of Rs 22,033 crore.
Harsh Jain, co-founder and COO at Groww was quoted in a PTI report saying that "with global trade improving and economies world over showing green shoots, investors are becoming more comfortable in investing in emerging markets like India."
Echoing the views, Rusmik Oza, executive VP-head of fundamental research-PCG, Kotak Securities Ltd, said the flows accelerated after the US election results as investors globally expect the dollar to weaken further in future.
"It is expected that the Federal Reserve and other Central Banks like ECB and BoE would have to take more monetary measures to combat the second wave of COVID. This would lead to more liquidity infusion into global markets," Oza was quoted in a PTI report.
Making a comparison between other emerging markets, Rusmik Oza said FPI flows in South Korea and Taiwan are closer to what India has received.