By Aditya Raghunath
Investing.com — FIIs (foreign institutional investors) continue to be bullish on India in February, buying net equities worth Rs 23,874.67 crore until February 19.
This is a sharp upswing from the slowdown in January 2021 where FIIs were net buyers to the tune of Rs 8,980.81 crore. FII buying had slowed drastically in January after FIIs bought equities worth Rs 48,223.94 crore in December 2020.
The IMF (International Monetary Fund) report in the last of January seems to have turned around the FII outlook. The IMF’s latest World Economic Outlook revised India’s GDP (gross domestic product) growth rate to 11.5% in 2021 compared to its earlier estimation of 7.8% (this estimate was made in October 2020).
IMF said the upward revision reflects, “[a] carryover from a stronger-than-expected recovery in 2020 after lockdowns were eased”. India is the only major economy expected to grow in double digits. It will be followed by China (8.1%), Spain (5.9%) and France (5.5%).
IMF Managing Director Kristalina Georgieva had said, “[India] actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it”.
The IMF figure reflects a very strong rebound for India after an estimate that its economy contracted by 8% because of the pandemic.