FPIs big buyers in financial services

FPI inflows, which were negative in the previous three months, have sharply turned positive in December, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Total FPI inflows in December through 22nd is Rs 57,313 crore including the buying through stock exchanges and primary market.

The steady decline in the US bond yields have caused this sudden change in the strategy of FPIs, he said.

FPIs were big buyers in financial services. This explains the resilience of this segment in recent days.

FPIs also bought in sectors like autos, capital goods and telecom, he said.

Since 2024 is expected to witness further declines in the US interest rates, FPIs are likely to increase their purchases in 2024 too.