How has the FPI buying been so far in the month of November with just 2 days to go?

Overall, the FPI numbers look quite positive but there is a much bigger story. For example, in the November till date, the FPIs had infused Rs.5,319 crore overall into Indian capital markets. This included an infusion of Rs.1,400 crore into equities and an infusion of Rs.3,919 crore into debt. That took the overall infusion to Rs.5,319 crore. But the question is how did FPIs report inflows in equities when they have been selling on a daily basis.

The answer lies in IPO inflows from FPIs. That is why the sub-text that is a lot more important here. If you break up the Rs.1,400 crore FPI flows into equities, then it actually entails secondary market outflows of Rs.25,919 crore and at the same time offsetting IPO inflows of Rs.27,319 crore. That explains the Rs.1,400 crore inflows. FPIs were major sellers in banks. However, they have also been active as anchor investors in IPOs.