The launch of COVID-19 vaccination drives in several countries and encouraging signs of an economic revival could keep attracting foreign portfolio investors to Indian equities, especially in the favorable backdrop of abundant global liquidity, benign interest rates and a weak dollar.

Foreign portfolio investors may remain net buyers of domestic shares for the fourth straight month in January, after pumping in $7.3 bln in December and a record $9.6 bln in November, money managers and experts say. They have already bought $575 mln worth of Indian equities in the first week of the month

While the spread of the new strain of the coronavirus is a concern, mass inoculations in the coming months are seen helping economic activity return to normal, with the improvement in consumer sentiment and lifting of restrictions. 

India will begin vaccinating 30 mln healthcare and frontline workers from Saturday, after which those with co-morbidities will get the shot.

Further support from governments and central banks is also expected to help the world economy out of its slumber in 2021, and may keep global risk appetite elevated, fund managers said. 

FPIs infuse Rs62,016-cr in Indian equities in December

Currency in circulation up 13pc in first 9 months-FY21

India ushering in rapid structural: Industry Minister Piyush Goyal