With December bets, FPIs turn net buyers in equities for 2024

The investment by foreign portfolio investors (FPIs) in Indian equities turned positive in 2024 till December 13 following their renewed interest over the past two weeks. On a net basis, FPIs have invested $982.6 million (Rs7,746 crore) in Indian equities in 2024 so far, buoyed by an investment of $13,357.5 million (Rs1,11,930.9 crore) in the primary market through IPOs and qualified institutional buying (QIB).

Their net investment this year had turned negative at the end of each of the previous two months implying an outflow from the equities due to a sharp bout of selling in October, which resulted in a record monthly outflow of $13,556.9 million (Rs1,13,858.8 crore). As of December 13, they have sold equities worth $12,374.9 million (Rs1,04,184.9 crore) in the secondary market in the current calendar year.

In the first fortnight of December, FPIs have turned net buyers in the secondary market, investing $1,703.4 million (Rs14,435.7 crore). In comparison, they had sold equities worth $2,662.2 million (Rs22,420.3 crore) in the first fortnight of the previous month.

For the first two weeks of December, together with $983.6 million investment in the primary market, FPIs took their total equity investment to $2,687 million (Rs22,765.6 crore) in Indian equities. They were net buyers on seven out of 10 trading sessions in December so far.

While FPIs are once again turning to Indian equities, domestic mutual funds have reduced the pace of investment. In December as of 11th, they invested Rs3,352.8 crore compared with Rs10,210.5 crore invested in the comparable period of the previous month. In 2024, so far, local funds have invested Rs4,06,058.6 crore in equities.