Continuing their buying spree, foreign portfolio investors (FPIs) infused a net Rs 17,722 crore into the Indian markets in November so far amid encouraging domestic and global cues.
According to depositories data, overseas investors pumped in a net sum of Rs 17,547.55 crore into equities and Rs 175.27 crore in the debt segment during November 1-22, taking the cumulative net investment to Rs 17,722.82 crore.
FPIs were net buyers in the preceding two months as well. They infused a net Rs 16,464.6 crore in October and Rs 6,557.8 crore in September into the domestic capital markets (both equity and debt).
However, some experts said FPIs are still wary of increasing their allocation to the Indian markets.
Umesh Mehta, head of research at Samco Securities said, "FPIs have become relatively cautious on India given the high valuations and Nifty hovering near its all-time high levels. Huge divergence between the large and small/midcaps is making them weary to commit further in a big way to the Indian bourses."
He added that "this trend is expected to continue over the short-term provided there are no surprises and domestic and global environment continue to be conducive."