“Even though FIIs have turned buyers in December, they have been large sellers,too, on certain days. This indicates that at higher levels, they may again turn sellers since Indian valuations continue to be relatively high compared to other markets. Rising dollar is another concern which might prompt FIIs to sell at higher levels,” added Kumar.
This revival comes after the FIIs pulled out a net Rs 21,612 crore in November and a massive Rs 94,017 crore in October — the worst monthly outflow on record. Interestingly, September had marked a nine-month high for FPI inflows, with a net investment of Rs 57,724 crore, highlighting the volatility in foreign investment trends.
With the latest inflow, FIIs investment has reached at Rs 7,747 crore in 2024 so far, data with the depositories showed.
Vipul Bhowar, Senior Director – Listed Investments, Waterfield Advisors said that the recent rally in the Indian market has been driven by positive political developments, a recovery in corporate stocks, increased foreign investments – both in primary and secondary markets and broad sector participation. He added that historical data shows that the Nifty index has closed higher in 71 per cent of December since 2000, with significant gains noted in 2023 and 2020.
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