InvestorQ : Is it true that FPIs have infused record amounts of money into Indian markets in the current year 2020?
Riya Dwivedi made post

Is it true that FPIs have infused record amounts of money into Indian markets in the current year 2020?

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shrinidhi Rajan answered.
6 months ago
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Let me first begin with the FII flows in the month of November and December. In November, FPIs infused Rs.65,000 crore into the Indian equity markets. Then in the first 11 days of December, they have already infused Rs.26,000 crore into the equity markets.

As a result, despite the selling in the month of March 2020, FPIs may end up infusing over Rs.150,000 crore into Indian equities this year. This has been largely supported by surplus liquidity infused by global central banks, cheap valuations and dollar weakness.

With nearly 2 weeks to go, the Indian equity markets have already seen record inflows from foreign portfolio investors to the tune of Rs.142,000 crore in 2020. However, the year also saw record selling in debt market instruments by FPIs to the tune of Rs.107,000 crore.

In fact, even as debt market outflows have bene intense, the DFIs have also been selling in equities on a daily basis even as MF redemption pressures built up. The last time India saw such huge FPI flows was in 2002. This is the sixth occasion that FPI flows have been above Rs.100,000 crore. The previous occasions were in 2002, 2010, 2012, 2013 and 2019.

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