Foreign Portfolio Investors turned net buyers in Indian equities for November as easing global bond yields and a softening US Dollar index enticed the greenback to flow back towards the country’s capital markets.
Despite that, India stands out within the Emerging Markets basket with the highest FPI inflows so far this year.
|FPI Flows In 2023
|In $ Billion
|November (As Of November 28)
With the November purchase, the total FPI inflow into Indian equities stands at $12.6 billion so far in 2023, according to Bloomberg data. The number is significantly higher than its other Emerging Market peers like South Korea, which saw inflows of $6.9 billion and Thailand, which saw an outflow of $5.3 billion.
After hitting the 5% mark in October, the US treasury yield closed lower in most sessions of November. The downward trajectory gained momentum amid growing speculations that the US Federal Reserve might initiate cutting interest rates next year, following close to two years of aggressive rate hikes.
(Edited by : Hormaz Fatakia)