Rs 70,986 cr: Nov registers highest-ever FPI flows

The domestic equity markets have seen an unprecedented liquidity gush, underpinned by the weakening of the dollar and aggressive monetary and fiscal stimulus undertaken by global authorities.

Investments by foreign portfolio investors (FPIs) have topped the $20 billion mark -- the most since 2012 in dollar terms.

Previously, India has had only two years -- 2010 and 2012 -- when foreign inflows have been greater than $20 billion.

In local currency terms, at Rs 1.5 trillion, overseas investment into equities has surpassed the previous high of Rs 1.33 trillion in 2010.

Interestingly, over $14 billion has flown into domestic stocks since November, propelling the markets by 18 per cent.

The increase in the pace of foreign inflows has coincided with the US election results and talks among US congressional leaders for another stimulus deal.

Also, the rapid progress on the COVID-19 vaccine froraised hopes of the economy returning to normalcy by the middle of next year.