Foreign investors have pumped in close to Rs 4,000 crore in the Indian capital markets this month so far on strengthening rupee and easing global crude oil prices.
This comes following a 10-month high net inflow of over Rs 12,266 crore in the capital markets (equity and debt) by Foreign Portfolio Investors (FPIs) in November.
According to data available with the depositories, FPIs infused a net amount of Rs 1,332 crore in equities and Rs 2,552 crore in the debt markets, taking the total to Rs 3,884 crore during December 3-21.
Marketmen attributed the inflow to persistent fall in crude oil prices, which dropped to over 15-month lows, and strengthening rupee against the dollar.
However, till December 7, FPIs were net sellers in the equity market, pulling out funds to the tune of Rs 383 crore. However, they had put in Rs 2,744 crore in the debt markets during the period under review.
The sell-off by FPIs was triggered after Chinese telecom giant Huawei’s CFO Meng Wanzhou, who is also the company founder’s daughter, was arrested in Canada for extradition to the US for suspected Iran sanctions violations.