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FPIs net buyers in Nov so far despite market correction; invest 5,319 cr

FPIs would be closely watching the spread of the new coronavirus variant and its possible impact on the growth globally.

By: ENS Economic Bureau | New Delhi |
November 29, 2021 3:00:26 am
The BSE, Mumbai. In October, FPIs were net sellers to the tune of Rs 12,437 crore. (File)

Foreign portfolio investors (FPIs) have pumped in a net sum of Rs 5,319 crore in the domestic capital markets despite a massive correction seen in equities over the last fortnight.

In October, they were net sellers to the tune of Rs 12,437 crore.

As per depositories data, overseas investors put in a net Rs 1,400 crore into equities and Rs 3,919 crore into the debt segment between November 1-26.

This translated into total net investment of Rs 5,319 crore.

“Since FPIs have been holding large quantity of banking stocks, they have been major sellers in this segment. Sustained selling has made banking stocks attractive from the valuation perspective,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He further noted that sharp correction in the market on 26th November has been mainly triggered by concerns arising out of the new strain of the virus spotted in South Africa, Botswana and Hong Kong.

“Despite recent correction, the markets continue to be at elevated levels and hence FPIs would have booked profits,” said Himanshu Srivastava, associate director-manager research, Morningstar India. Trend reversal on a weekly basis has become a norm with respect to FPI flows in the Indian debt markets, he added.

FPIs would be closely watching the spread of the new coronavirus variant and its possible impact on the growth globally.

Higher valuation is also a concern, which may continue to trigger profit booking at regular intervals, he said.

“Future of FPI flows is expected to remain volatile given key events such as upcoming state elections, expectation of rise in interest rates and concerns a new Covid variant will prompt fresh mobility restrictions, hindering economic recovery,” said Shrikant Chouhan, head-equity research (retail), Kotak Securities.

During the last week, the BSE benchmark Sensex plunged by 2,528.86 points or 4.24 per cent.

Reliance Industries (RIL) saw its market worth tank by Rs 38,440.66 crore to Rs 15,30,109.51 crore. The valuation of Infosys took a hit of Rs 37,950.03 crore to reach Rs 7,10,925.34 crore and that of HDFC plummeted by Rs 33,067.68 crore to Rs 4,96,168.98 crore. In the ranking of top 10 firms, RIL remained the most valued firm, followed by TCS, HDFC Bank, Infosys, HUL, ICICI Bank, HDFC, State Bank of India, Bajaj Finance and Bharti Airtel.

(With PTI Inputs)

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