After investing over Rs 36,200 crore in Indian equity markets last month, foreign investors have increased their investment to Rs 4,500 crore in December, owing primarily to the decline in the dollar index. Foreign portfolio investors (FPIs) have turned sellers in the last four trading sessions, withdrawing Rs 3,300 crore as they take a cautious stance ahead of the US Federal Reserve’s interest rate decision.

According to depositories’ data, FPIs invested a net Rs 4,500 crore in equities from December 1 to 9. This followed a net investment of Rs 36,239 crore in November, owing primarily to a decline in the US dollar index and optimism about overall macroeconomic trends. Foreign investors previously withdrew Rs 8 crore in October and Rs 7,624 crore in September.

The Indian markets are at all-time highs. This could have resulted in FPI profits as well. Apart from equities, foreign investors pumped Rs 2,467 crore into the debt market during the review period. So far this month, FPI flows have been negative in emerging markets such as the Philippines, South Korea, Taiwan, Thailand, and Indonesia.

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