FII Investments Surge to Rs 22,765 Crore in December Amidst Steady Economic Growth
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Mumbai, Dec 14 (NationPress) The activity of foreign institutional investors (FIIs) has persisted in the Indian stock exchanges throughout this month, reaching a total of Rs 14,435 crore (up to December 13), thanks to robust economic growth.
The cumulative buying figure from FIIs, which includes transactions from the exchanges as well as the 'primary market and others category', amounted to Rs 22,765 crore (as of December 13), according to data from the National Securities Depository Limited (NSDL).
Experts noted that FIIs turning into buyers this December, following a period of relentless selling in October and November, has significantly contributed to the market's recovery from its November lows.
This renewed interest from FIIs has sparked a rally in large-cap stocks, especially within the banking and IT sectors.
Vipul Bhowar, Senior Director-Listed Investments at Waterfield Advisors, highlighted that the recent surge in the Indian market is attributed to favorable political developments, a rebound in corporate stocks, an uptick in foreign investments—both in primary and secondary markets—and widespread sector participation.
Historical trends indicate that the Nifty index has closed in positive territory in 71% of Decembers since 2000, with notable gains observed in 2023 and 2020.
The Reserve Bank of India (RBI) has enhanced liquidity by reducing the Cash Reserve Ratio (CRR), which is likely to uplift market sentiment.
Furthermore, the consumer price index (CPI) inflation decreased to 5.48% in November from 6.21% in October, boosting investor confidence and raising expectations for potential monetary policy easing by the RBI.
Looking ahead, a more accommodative monetary policy from central banks may facilitate lower borrowing costs.
Positive conditions and investor sentiment have bolstered recent market dynamics.
Experts predict that increased domestic institutional and retail investments are likely to flow into the large-cap banking sector. The IT sector is also expected to perform well and draw further FII investments, indicating a notable shift in FII strategy in India, suggesting that the phase of persistent FII selling is behind us.
