After two months of intense selling, foreign investors turned net buyers in October to invest over Rs 3,000 crore in stocks, enthused by the Government’s Rs 2.11 lakh crore bank recapitalisation plan.
The latest inflow followed a net pullout of Rs 24,000 crore from stock markets in the past two months (August and September). Prior to that, FPIs had invested over Rs 59,000 crore in equities between February, July.
According to depository data, foreign portfolio investors (FPIs) infused a net sum of Rs 3,055 crore in equities last month. FundsIndia.Com Head of Mutual Fund Research Vidya Bala said that FPIs continued their net selling streak in October until the Government’s announcement of recapitalisation of public sector banks and over Rs 6 lakh crore outlay for road development.