Foreign investors favored India's primary market in November, investing more than in the secondary market. However, they were net sellers of Indian equities overall for the month. This trend continues for the year, with significant outflows. Local mutual funds are offsetting these sales by increasing their equity investments. Key factors for December fund flows include GDP growth and corporate earnings.

FPIs favour IPOs again, pump $1.3 billion into primary market in November

Foreign Investors Favor Indian Primary Market, But Remain Net Sellers Overall

In November, foreign investors demonstrated a clear preference for India's primary market, investing more in initial public offerings (IPOs) than in the secondary market. However, despite this trend, they remained net sellers of Indian equities for the month.

Trend Continues for the Year

This trend of significant outflows from the Indian market continues for the year, with foreign investors opting to sell more than buy. However, local mutual funds have been offsetting these sales by increasing their equity investments, thereby maintaining market stability.

Key Factors Influencing December Fund Flows

GDP Growth: The rate of Gross Domestic Product (GDP) growth in India will play a significant role in determining the direction of fund flows in December. Strong economic growth can lead to increased investor confidence and a surge in investments.
Corporate Earnings: The performance of Indian corporates will also be a key factor in influencing fund flows. Positive earnings can boost investor sentiment and lead to increased investments.

The Indian market is expected to be closely watched in December as investors and analysts await the release of key economic indicators and corporate earnings reports.