FPIs pump Rs 58,694 crore in November - highest monthly inflow in history

Indian equities have registered huge foreign inflows in the month of November till date, with record investments of Rs 58,694 crore. These investments crossed Rs 50,000 crore on Tuesday after foreign portfolio investors (FPIs) poured in Rs 4,890 crore in the stock markets.

The momentum continued the next trading day with investments close to Rs 5,530 crore despite some money going off the table due to profit-booking. Barring one single trading session, the FPIs have remained net buyers all through this month, till date. After an exodus of Rs 61,973 crore in March, there was a further flight of foreign capital in April and September when they withdrew approximately Rs 15,000 crore from equities.

Meanwhile, in the calendar year 2020, net flows of Rs 1.06 lakh crore have been received so far, which is already Rs 5,460 crore above the last year's investments.

Besides, India remains a preferred choice for FPIs unlike other emerging markets peers. In the past 12 months, the country saw flows of over $13 billion while all other emerging markets such as Indonesia, Taiwan, Brazil, South Africa, Thailand, Malaysia, Philippines and South Korea witnessed equity outflows.

"In October, FPIs sold equities in all emerging markets we track except India and Brazil. By market size, India and Brazil saw the biggest inflows of $2.7 billion and $0.5 billion, respectively. South Africa (-$1.0 billion) and Thailand (-$0.7 billion) saw the biggest outflows. However, November (month-till-date) has seen big inflows for many markets; huge foreign inflows have been registered in India ($6 billion), Taiwan ($5.6 billion), South Korea ($5.2 billion), Brazil ($4.6 billion) and Thailand ($1 billion)," highlighted a CLSA report dated November 22.

On Wednesday, Indian equity market snapped its three-day gaining streak to end in loss, down by 1.6 per cent, despite touching new record high in the morning session. "Going ahead, the overall structure of the market remains positive given the optimism over vaccine progress and formal beginning of transition to Joe Biden as the next US President. However intermittent profit-booking cannot be ruled out given the sharp rally in near term," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.

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