Foreign portfolio investors (FPI) have remained net buyers to the extent of Rs14,649-Cr in Indian markets in January, amid the availability of global liquidity and emerging markets being a preferred destination for foreign funds.

According to FPI statistics available with depositories, overseas investors infused a net of Rs 19,473 crore into equities but pulled out Rs 4,824 crore from the debt segment between January 1 and January 29. The total net investment infusion in January stood at Rs 14,649 crore.

Morningstar India Associate Director (Manager Research) Himanshu Srivastava said, "Excess liquidity in the global financial markets with central banks and governments worldwide announcing stimulus measures to support their dwindling economies, made its way into the emerging markets with India too benefitting from this trend." "Given the uncertainty surrounding the Budget, FPIs would have preferred to book some profit at these levels," Srivastava said.

Geojit Financial Services Chief Investment Strategist V K Vijayakumar said that due to uncertainty regarding the budget proposals, FPIs have been a bit apprehensive about the direction of the market going ahead and, therefore, they have seen selling in the past few days.

He further noted that India has been one of the highest recipients of FPI funds among emerging markets in November and December which played a significant role in pushing the Sensex to record 50,000 levels.

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