After investing over Rs 36,200 crore last month, foreign investors continued their positive momentum and have injected a net Rs 10,555 crore in Indian equities so far in December amid stabilisation in oil prices and moderating US inflation.
Going forward, FPI flows are expected to be volatile amid equity markets worldwide witnessing increase in volatility as global central banks reiterate their intent to keep policy rates high for an extended period to curb elevated inflation in their respective economies, said Shrikant Chouhan, head of equity research, (retail), Kotak Securities Ltd.
Further, capital flows will be dictated by the global developments, particularly the trends in the dollar index and US bond yields. This, in turn, will be determined by the trajectory of US inflation, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
According to data with the depositories, Foreign Portfolio Investors (FPIs) invested a net sum of Rs 10,555 crore in equities during December 1-16.