How were FPIs investing in India in the month of January 2021 so far?

Foreign portfolio investors were net buyers to the tune of Rs.3,117 crore in the first 2 weeks of January. In terms of specific asset classes, the FPIs infused Rs.1,857 crore into equities and Rs.1,743 crore into hybrid instruments. At the same time, these FPIs had sold debt to the tune of Rs.482 crore on concerns over global rate hawkishness.

FPIs have currently adopted a cautious approach towards Indian equities due to the hawkishness shown by the Fed and overall India valuation concerns. FPIs also awaiting more clarity from the upcoming Union Budget expected to be announced on 01-Feb. However it must be noted that other Asian emerging markets like Taiwan, South Korea, Thailand and Indonesia saw robust FPI inflows.