Amid the pall of gloom over the losses incurred due to COVID-19, there is good news for the Indian economy because foreign investors are betting big on the net inflows into the Indian equities.
As per a report in Economic Times, Foreign portfolio investors (FPI) pumped in ₹54,980 crore in Indian markets in December amidst availability of excess liquidity in global markets. Also, there is the expectation of a fresh stimulus package by various central banks.
According to reports, ₹48,858 crore have been invested into Indian equities, and ₹6,122 crore have been invested in the Indian debt segment.
Himanshu Srivastava, associate director – manager research, Morningstar India said, “availability of excess liquidity in global markets and low-interest rates diverted foreign flows into emerging markets like India.”
Harsh Jain, co-founder and COO at Groww said, “After months of buying a few select stocks, FPIs are beginning to broaden their horizon as buying in small and mid-cap space has increased,”.
November saw the whopping sum of ₹62,951 crore invested into Indian equity markets which was the highest-ever inflow of funds recorded ever in a single month.
Many market analysts think there is a positive outlook by investors towards India amid the drop in the number of COVID-19 cases and the successful vaccine development against COVID-19, both in India and the rest of the world.