FPI inflows in stocks hit $1.5 bn in Nov; total crosses $15 bn

Market analysts feel that overseas investors are betting on the government's reforms agenda

Overseas investors have pumped in $ 1.55 billion in equity market so far this month, taking the total to over $ 15 billion since the beginning of the year.

As per the latest data, foreign investors have purchased stocks worth Rs 42,866 crore between November 3 and 14, while they offloaded shares to the tune of Rs 33,352 crore during the same period, resulting into a net inflow of Rs 9,514 crore ($ 1.55 billion).

Market analysts said overseas investors (foreign institutional investors, sub-accounts or foreign portfolio investors) are betting on the government's reforms agenda.

"Equity market flows have continued to remain strong. I think Indian fundamentals would show marked improvement in the next 2-3 years. Moreover with the renewed interest in stock markets both from local and global players, valuations are unlikely to come down," Ladderup Wealth Management Managing Director Raghvendra Nath said.

"As such, it is better to enter the market and wait for the theme to play out over the next few years than to wait for corrections," he added.

Since the beginning of the year, foreign investors have made a net investment of $ 15.3 billion (Rs 91,780) crore into the country's equity market.

The debt market has also seen similar trends with overseas fund inflows of $ 23 billion (Rs 1.4 lakh crore) since January.

From the beginning of June, FIIs (Foreign Institutional Investors) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Sebi to create a new investor category called Foreign Portfolio Investors.