New Delhi, Dec 16 (IANS): Chief Investment Strategist at Geojit Financial Services V K Vijayakumar on Saturday said that a major development in December has been that FPIs have heavily bought stocks in banking and IT segments.

He said that this trend has intensified after the Fed signalled the end of the tightening cycle and indicated possibly three rate cuts in 2024.

He said that this triggered a crash in U.S bond yields with the 10-year going below 4 per cent.

“FPIs heavily bought stocks in banking and IT segments. FPI buying is likely to sustain and going forward,” he said.

He said that the India is one of the top investment destinations of FPIs.

“There is a near consensus now in the global investing community that India has the best prospects among the emerging economies for sustained growth for many years to come,” he said.

He said that this growth has the potential to create phenomenal wealth through the stock market.

“FPIs are investing to benefit from this potential wealth creation,” he said.

He said that after the inclusion of India in the J.P Morgan Emerging Market Bond Index, there is high enthusiasm to invest in Indian government bonds.

“Some institutions may have already started buying. Now that the U.S. bond yields have corrected significantly, Indian bonds will attract more investment,” he added.