Markets: FPIs continue to buy, December flows to hit $7 billion

By: |
December 30, 2020 2:45 AM

While it’s the abundance of liquidity worldwide that is channelling funds into equities, India seems to be getting more than its fair share of EM allocations.

While it’s the abundance of liquidity worldwide that is channelling funds into equities, India seems to be getting more than its fair share of EM allocations.Nonetheless, returns in CY21 are expected to be similar to that in CY20 levels of around 12% and more uniform across sectors compared with the wide divergence seen this year.

Indian equities may be valued at their most expensive ever but foreign portfolio investors continue to be buyers. Flows in December have crossed $6 billion and could well hit $7 billion before the month is over.

While it’s the abundance of liquidity worldwide that is channelling funds into equities, India seems to be getting more than its fair share of EM allocations.

The earlier-than-expected rebound in the economy is expected to give corporate earnings a fillip as also boost the government’s tax collections allowing it to spend more on much-needed investments. While earnings for FY22 have been upgraded post the results announcements for Q2FY21,the Street is betting on more upgrades.

Nonetheless, returns in CY21 are expected to be similar to that in CY20 levels of around 12% and more uniform across sectors compared with the wide divergence seen this year.

Analysts believe several sectors and stocks are now looking fairly valued and offer limited scope for re-rating.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Quarterly earnings, vaccine rollout key factors for market this week: Analysts
2IRFC, Indigo Paints to hit market this week, eye over Rs 5,800 cr in IPO
3FPIs invest Rs 14,886 cr in first half of January