FPIs investment in equities over ₹10,500 cr so far in Dec amid volatile markets

As per NSDL data, FPIs are net buyers overall between December 1st to 16th with an inflow of ₹10,555 crore. Last week, the data showed that their inflows in the Indian stocks were around ₹4,500 crore — which means the investment rose by ₹6,055 crore from the December 12-16th trading sessions.

On the other hand, while December 12-16th week witnessed buying in the equities, there was a sharp outflow in the debt market. So far in the current month, the outflow in debt instruments from FPIs comes to around ₹2,180 crore. This was not the case in the week ending December 9th, as FPIs had pumped in ₹2,467 crore, as per NSDL data.

Among other instruments, FPIs inflow came in around ₹196 crore in debt-VRR and ₹65 crore in the hybrid market by end of December 16th.

Overall, FPIs’ total investment stood at ₹8,635 crore in Indian markets (including equities, debt, debt-VRR, and hybrid).

In November month, FPIs inflow overall in the equities market stood at ₹36,239 crore — becoming the second-highest monthly buying so far in 2022. FPIs most buying was seen in August with an inflow to the tune of ₹51,204 crore.

Year-to-date, FPIs are net sellers in equities with an outflow of ₹1,22,003 crore.

Meanwhile, in the week from December 12-16, FIIs were net sellers with an outflow of ₹1,832.61 crore from equities on both BSE and NSE. While domestic investors pumped in ₹3,462.22 crore as they were net buyers throughout the week.

Overall, so far in December, FIIs are net sellers with an outflow of ₹7,490.05 crore in the equities, while DIIs have infused ₹10,551.62 crore.

Highlighting FIIs performance, ICICI Direct in its weekly outlook report said, global markets came under pressure as the Fed maintained its insistence on the pace of interest rate hikes despite cooling down inflation. It reignited recession worries with weakness observed across asset classes. However, the dollar index and US bond yields remained largely range-bound suggesting no major change in risk perception.

It added, “We believe the recent weakness is short-term in nature. Also, despite US equity markets moving near their month lows, the VIX index remained lower, suggesting the same.”

Further, the stock brokerage stated that FIIs stayed largely on the sidelines last week as well and no major flows were observed after MSCI-related flows were seen in the last week of November. 

In the week that ended on December 16, Sensex shed by at least 1.4%, while Nifty 50 declined by over 1.2%.

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