In December alone, while FPIs withdrew Rs 25,252 crore from stock markets, they invested Rs 11,782 crore in IPOs.
In calendar year 2021 so far, FPIs have withdrawn Rs 47,126 crore from stock markets, but invested Rs 78,433 crore in the primary market.
Merchant bankers say that foreign investors have been looking at listing gains in IPO investments.
“As markets around the world continued to calibrate the currents of inflation, monetary policies, and Omicron, the beacon of pessimism was passed on to domestic bourses as well.
The Bank Nifty has been a major victim of this selling spree, with most of the top ten constituents of the index experiencing a sequential drop in FPI holdings for the quarter ended September 2021.
The planned $30-billion per month acceleration of tapering will bring the pandemic-driven bond purchases to a close in March 2022, setting the road for hike in the Fed funds rate.
“Back home, although our central bank provided no future guidance, Nifty also snapped its four-day losing streak and closed in the green temporarily following the Fed’s announcement,” Shah said.