Foreign portfolio investors (FPI) pumped a massive sum of Rs 62,951 crore in the Indian markets in November, becoming net buyers for the second consecutive month. It is also the month of the highest quantum of money invested ever in the equity segment since the FPI data has been made available by the National Securities Depository Ltd (NDSL).
According to depositories data, FPIs invested a net Rs 60,358 crore into equities and Rs 2,593 crore in the debt segment, taking the total net investment to Rs 62,951 crore between 3 and 27 November.
In October, FPIs were net buyers to the tune of Rs 22,033 crore.
Global investors are preferring to invest in emerging markets more than developed markets as the potential upside is much higher in emerging markets, said Harsh Jain, co-founder and COO at Grow to PTI adding that inflows into other emerging markets like South Korea and Taiwan show a similar trend.
"FPIs have invested into top bluechips of India in a big manner. A bulk of the investment that has come in has been into the banking sector. So, the inflow has been concentrated in a few stocks," Jain further said.
After the outcome of the US Presidential election and positive development on the vaccine front, major uncertainties affecting the world at large have been removed. At this stage, from the investment point of view, emerging markets' stock valuations appear to have attractive valuations when compared to developed markets.
Weakness in the US dollar in November and accommodative stance in monetary policies of major central banks also supported buying in stocks of emerging markets.