Breaking Tradition: FIIs show unrelenting love for India in pandemic times (IANS Special)

By Rohit Vaid Mumbai, Jan 6 : Breaking with tradition, FIIs have shown persistent interest in India’s equities by pumping up the never ending bull run during the unusual pandemic-afflicted time period.
Analysts across the board opined that such a scenario was visible during last month, which historically sees less to no FII activity given the international holiday season.
But, the search for a decent ‘RoI’ brought several FIIs to India’s shores even in December.
Last month they invested Rs 62,016 crore in equity, while in December 2019, inflows stood at just Rs 7,338 crore.
“In 2018-19 and 2019-20, December gains were muted and January also was not such a great month. This time around, due to the pandemic-related effects and the relentless flow from FPIs, year end profit taking activity seemed to be limited in December as everyone was convinced that they could get a better exit in January,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“To that extent part of the January effect played out in December. Having said that we could still see some gains coming in January especially the early part.”