Net buyers of FPI for the third month; invests Rs 22,872 cr in November

New Delhi, December 1 () Foreign investors remained net buyers in the Indian capital market for the third consecutive month in November, registering 22,872 million net rupees during the month, according to depositary data.

Analysts said the expectations of a trade agreement between the US. UU. And China, and more relief measures, as well as the momentum of divestment by the government, among other factors, helped keep the IPF trapped in capital markets.

The data showed that a net sum of Rs 25,230 million rupees flowed to the shares by the FPIs in November. However, Rs 2,358.2 rupees were taken out of the debt segment, which resulted in a total net investment of Rs 22,871.8 rupees for FPI in November.

The IPF had invested a net amount of Rs 16,037.6 million in October and Rs 6,557.8 million in September.

The IPF have been constant net buyers in November, mainly due to the expectations of a commercial agreement between the US UU. And China, relief measures along with the momentum of divestment by the government, hopes for a scrapping policy and some others, said Umesh Mehta, head of research at Samco Securities.

In addition, the tax reforms announced in September 2019 will now be legislated. This will eliminate ambiguities in the implementation of these reforms, said Pranay Bhatia, partner and leader of tax and regulatory services at BDO India.

Fiscal reforms and the positive approach will greatly help reduce general taxes for businesses, which will lead to greater liquidity and economic growth, he added.

In addition, improving rural consumption figures along with expectations of better results by companies is helping this inflow. The middle cover space has many attractive ratings at this time, said Harsh Jain. However, in the future, there is a certain nervousness about the next GDP numbers. Many do not have high hopes. A GDP lower than expected in this quarter could alter some IPF for a while, Jain added. SRS MR MR

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