U turn of foreign investors, investing bags full of money in Indian stock market

After selling for the last several weeks, foreign investors have made a strong comeback in the Indian stock market in the first week of December. After reducing investments extensively in October and November, foreign portfolio investors (FPIs) have now made a net investment of Rs 24,454 crore in the first 6 days of December. This investment shows the strong return of foreign investors in the Indian stock market. Experts believe that this will not only bring greenery back to the Indian stock market, but may also see a big rally in many stocks again.

A lot of money was withdrawn in October-November

In November, FPIs had made a huge withdrawal of Rs 21,612 crore from the Indian stock market and in October, Rs 94,017 crore. In contrast, in September, FPIs had invested the highest amount of Rs 57,724 crore in nine months.

Why did foreign investors take a U turn?

Market experts say that reasons like global financial stability, possibility of interest rate cut by the US Federal Reserve and reduction in geopolitical tension have inspired FPIs to return to the Indian market. Market sentiment has become positive due to the return of foreign investors. FPI activities amid continuous buying by domestic institutional investors (DIIs) are strengthening the stability of the Indian stock market.

stock market boom

The effect of withdrawal of foreign investors is clearly visible on the stock market also. Last week, BSE Sensex had closed with a gain of 1,906.33 points or 2.38 percent. Whereas, an increase of 546.7 points or 2.26 percent was recorded in NSE Nifty.

when and how much was bought and sold

In August, FPIs bought shares worth Rs 7,322 crore. At the same time, investment by foreign investors in July stood at Rs 32,359 crore. Talking about June, this month FPIs were net buyers of Rs 26,565 crore. Whereas, in April and May there were net sellers of Rs 8,671 crore and Rs 25,586 crore. At the same time, in January 2024, FPI had sold shares worth Rs 25,744 crore.

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