New Delhi: At a time when the Covid-19 pandemic has resulted in gloomy market sentiment across the globe, the foreign investors have kept faith in Indian equities.

India has topped the emerging markets in receiving the foreign investment in equities. For the year 2020, the foreign institutional investors (FIIs) kept pumping money in Indian equities and continued with the buying spree.

It’s because of this that the Indian equities received more than Rs 1.6 lakh crore ($23 billion) from foreign institutional investors (FIIs), which is highest among emerging markets for 2020. However, other emerging markets including Asian economies witnessed more outflows than inflows.

FIIs have been relentlessly buying in the Indian markets and the inflows hit a record high in November this year, as it touched Rs 55,000 crore in a single month.

Strong FII inflow in 2019 also

This is not the first year when India received FII inflows. In 2019 also, the FII inflow was $14.2 billion, among the highest in emerging markets.

“More than $10 trillion worth of stimulus measures were initiated across the globe to overcome the challenges thrown by the pandemic and it will take at least 1 to 2 years for most of the central banks to recover the debt and revive their balance sheets back on track,” Sunilkumar Katke, Head, Commodity and Currency at Axis Securities was quoted by Moneycontrol.com.

Foreign investors seem to have found hope in India growth story at a time when the western economies are beset by pandemic and falling growth.

Analysts feel what may be attracting FIIs to Indian equities may be hopes of strong economic recovery, earnings growth in coming years, decline in COVID-19 cases at a time when the western world (especially US and European nations) are with hit by second Corona wave and weak dollar index.