Is it true that foreign investors have been aggressively buying into Indian equities in the last few weeks?

Yes, that is correct. FPIs have been showing a lot of enthusiasm about investing in India and that is evident in the last few weeks. Foreign portfolio investors or FPIs have invested close to Rs.8381 crore into Indian markets in the first week of November ending on 06 Nov.

This infusion of FPIs comes on comes on top of a healthy October where FPIs were net buyers in the Indian markets. In the first week of November, the FPIs infused Rs.6564 into equities and Rs.1817 into debt market which shows a degree of all around enphoria.

If you look back at the month of October 2020, FPIs had infused a total sum of Rs.22,033 crore into Indian markets. That comes after September ended up being a month when the FPIs sold in India resulting in the sharp correction in the last week of September.

The euphoria began towards the last week of October when the US based surveys started showing a distinct swing in favour of Joe Biden as the next POTUS. Most global markets celebrated this swing and Indian markets were no exception on a global return to normalcy.

There are other reasons too for the FPI burst, apart from the Biden effect. FPIs are also betting on India as a equity property for a quick turnaround in the economy, more reforms and better than expected quarterly results; at least in some of the key heavy sectors.