New Delhi, Jan 10 (IANS) After a continuous sell-off in the past three months or so, foreign portfolio investors have turned net buyers in the first week of January in the Indian equity segment, data showed.
So far in 2022, FPIs have infused Rs 3,695 crore in the Indian equity.
The recent correction in domestic equity markets provided them a good buying opportunity, analysts opined.
“This (buying by FPIs) comes at a time when the market has recovered after a fall of almost 12 per cent from the high of 18,604 to a low of 16,410. FIIs seem to be more comfortable buying now with the start of the new rally post the correction ahead of the Q3 earnings,” said Jayesh Bhanushali, AVP, Research at IIFL Securities.
“Also, with the run-up to the budget, we expect the FII buying trend to continue and the market to have a positive bias in the short term.”
During October-December period, foreign investors made a net outflow of Rs 38,521 crore from the Indian markets.
“Anecdotally, FIIs remain sellers in the last month of the calendar year and they start to buy again from the 2nd or 3rd week of January. Union budget and State elections along with Central banks’ policies will also play an important role in the directions of FIIs’ flows however I am optimistic about the market outlook and their stance,” said Parth Nyati, Founder of Tradingo.