How have foreign portfolio investors been investing in the month of February 2021 till date?

Foreign portfolio investors or FPIs have infused a sum of Rs.22,038 crore into Indian markets in the first two weeks of the month of February with another 2 weeks of trading still to go.. If you break up this infusion, then Rs.20,593 crore flowed into equity and the balance Rs.1,445 crore actually flowed into debt instruments.

Early trends in the month of February indicate that it could be a much better month compared to January. In fact, the January picture was spoilt by the sharp turn in FPI flows in the last week of January due to concerns ahead of the budget on how the government will handle the sticky fiscal deficit question. But that was answered quite credibly.

In January 2021, the markets saw total sum of Rs.14,649 crore infused into equities. It can be said that the Union Budget and its reformist undertone made a big difference in the final analysis. FPIs have been also pretty impressed by the way India has managed to bring COVID under control and has also made rapid strides in the world’s largest vaccination drive.