Have FIIs been buying aggressively in India in October month?

That is correct. Foreign Portfolio Investors or FPIs have totally infused Rs.22,033 crore into the Indian capital markets in the month of October 2020. Out of this infusion, Rs.19,450 crore came into Indian equities and the balance amount of Rs.2,492 crore into Indian debt.

The infusion into Indian equities was driven by strong corporate results for the second quarter from key companies. Global investors are also looking at India as a veritable hedge against the likely uncertainty that could be caused by the US elections next week. It appears to be too close for comfort.

Most FPIs are also impressed by the fact that COVID-19 cases in India are falling drastically and the world may be closer to a vaccine than previously thought. That gives hope that India would be now able to arrest the spreading trend better than other European nations.

Last, but not the least, credit must be given to the Monetary Policy Committee too. The accommodative tone of the MPC also helped markets as it sort of reassures that there was no scope for any disruption via rate hikes, even if inflation was to spike.