FPI inflows at Rs 65k cr in last 12 months

Experts said that a high growth rate, stable government, reduction in inflation, financial discipline by the government and efforts to make India a capital market hub are the main reasons for an increase in foreign investment in the stock market

Stable Environment

♦ FPIs’ total investment in debt mkt at Rs8,624 cr

♦ FPIs’ total investment was Rs1,82,965 cr

♦ Their total sell-off was Rs1,18,141 cr

♦ In last 1 yr, Sensex surged 21%, Nifty shot up by 25%

New Delhi: Foreign Portfolio Investors (FPIs) invested Rs 64,824 crore in the last 12 months (August 2023 to August 2024-till now) in the Indian share market. According to depositories data, FPIs total investment was Rs1,82,965 crore, and a total sell-off of Rs1,18,141 crore last year. FPIs have pulled out Rs18,824 crore from equities till August 14. However, during this period, total investment in the debt market stood at Rs8,624 crore.

There are many reasons for foreign investors to invest in the Indian market compared to other markets. Experts said that a high growth rate, stable government, reduction in inflation, financial discipline by the government and efforts to make India a capital market hub are the main reasons for an increase in foreign investment in the stock market.

India’s GDP growth rate was 8.2 per cent in the FY 2023-24. It is expected to grow at the rate of 7.2 per cent in the current financial year. The inflation rate is also continuously decreasing in India. The retail inflation rate in July was 3.54 per cent, This was 5.08 per cent in June.

Other experts said: “There are many reasons behind the increase in FPI investment. First, the government has assured that reforms will also be continued during this tenure. Second, the deceleration of China’s economy, as evidenced by a 12 per cent decline in copper prices over the past month. Third, some block deals have been done by FPI.”

The Indian stock market witnessed a stellar rally in last one year. During this period, the Bombay Stock Exchange (BSE) benchmark Sensex surged 21 per cent and the National Stock Exchange (BSE) shot up by 25 per cent in the last year.