Foreign portfolio investors have invested Rs 42,733 crore in Indian equities in the first 15 days of December after reversing their selling streak in November. The inflows witnessed in December is the highest in four months. The surge in inflow was witnessed after BJP secured majorities in the Hindi heartland states of Rajasthan, Madhya Pradesh, and Chhattisgarh, which strengthened its position as the dominant party in north India. The BJP's better-than-expected performance in the assembly polls has substantially reduced the perceived risk for the next year, as it looks highly likely to win the upcoming Lok Sabha election, according to analysts who said in an interview with NDTV Profit. Investors who have been awaiting clarity are likely to start deploying their money, analyst said, as the sentiment was uplifted by the Bharatiya Janata Party winning three states in polls. On a macro level, the U.S. Federal Reserve also kept its key interest rate in line with expectations at the latest FOMC meet and signalled three cuts next year. This also led to a decline in U.S. bond yields.
Foreign investors have bought Indian equities worth Rs 1,47,705 crore so far this year, according to NSDL data.
 
For More: VISIT