MUMBAI : Foreign investors have bought more than $ 3 billion in shares in the past five trading days after being net sellers of the asset class in the past month.

Foreign Institutional Investors (FIIs) invested $ 3.02 billion net in Indian stocks between November 11 and 17, after selling shares with a net worth of $ 3.40 billion between October 6 and the November 10.

“Foreign portfolio investment activity in secondary markets over the past few days has been subdued, but flows in primary markets have been significant, reflecting their subscription to recent Initial Public Offerings (IPOs), including PayTM” said Deepak Jasani, chief, retail research, HDFC Securities.

Between November 11 and 17, the IPOs of Latent View Analytics, Tarsons Products Ltd and Go Fashion were opened for subscription. Latent View Analytics was the largest subscribed IPO in the past 20 years, setting a record 338 subscribers with bids valued at $ 1.13 trillion. Tarsons Product has subscribed 77 times.

This purchase of FII took place despite the fall in Indian and global stocks amid inflationary pressures, which raised fears that the US Federal Reserve could tighten its key rates faster than expected. Domestically, amid higher than expected inflation in October, upside risks and the need for policy normalization, analysts expect the Reserve Bank of India to start trading soon. to tighten.

Sensex and Nifty fell for the third consecutive session on Thursday and are down 1.8% and 1.9% respectively during that time. Sensex and Nifty both hit all-time highs on October 18 and have since lost nearly 3.8% each. So far this year, Sensex and Nifty have grown by 26% and 27% respectively.

Retail price inflation in the United States jumped to 6.2%, the highest in more than three decades, which was negative for global markets. The market is now recalibrating its expectations for the Fed’s response to rising inflation, as it appears to be biased in favor of a non-transitory nature. Analysts said the anticipated reduction of a larger amount of reduction by the Fed could lead emerging markets, including India, to receive reduced foreign investment.

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!