Foreign portfolio investors (FPIs) remained net buyers for the 3 consecutive months by investing Rs 68,558 crore in Indian markets as global investors continued betting on emerging markets.

As FPIs surged amid the pandemic, December 2020 recorded the highest-ever monthly inflow of FPIs at Rs 62,016 crore. FPI inflows into Indian equities surpassed the previous high of Rs 60,358 crore recorded in November 2020. This was the third consecutive month of net inflows. The year 2020 also recorded the highest-ever yearly net inflow of FPIs into equities at over Rs 1.70 lakh crore.

The foreign investments into equities came on the back of excess liquidity due to stimulus measures globally, weak dollar, and the low valuation of stocks. In terms of purchase, foreign portfolio investors initially preferred large-cap stocks till October. Later on, they enlarged their purchases to include the mid and small-cap segments, according to analysts.

Foreign institutional investors ‘ hold on to bullish bets

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