Foreign Investors infuse over Rs 2 lakh crore in FY24

FPI in equity markets: Foreign Portfolio Investors (FPIs) have made a strong comeback in the Indian equity markets, injecting more than Rs 2 lakh crore in the fiscal year 2023-24. This surge in investments reflects growing optimism surrounding the economic fundamentals amidst a challenging global environment.

Looking ahead to fiscal year 2024-25, industry experts express a cautiously optimistic outlook, anticipating sustained FPI inflows driven by progressive policy reforms, economic stability, and attractive investment avenues. However, they also acknowledge the potential for intermittent volatility due to global geopolitical influences, emphasizing the need for strategic planning and agility in navigating market fluctuations.

In the current fiscal year, FPIs have shown a renewed interest in Indian equities, with a net investment of around Rs 2.08 lakh crore and an additional Rs 1.2 lakh crore in the debt market. This marks a significant turnaround from the preceding years, where FPIs had withdrawn substantial amounts from the Indian market.

Factors such as inflation and interest rate scenarios in developed markets, currency movements, crude oil prices, and the health of the domestic economy have been key drivers influencing FPI flows.

The positive momentum in FPI investments is expected to continue, supported by strong GDP growth and stable macroeconomic indicators. With the upcoming inclusion of Indian bonds in JP Morgan's index, the outlook for FPI inflows into India remains promising, further bolstering the country's position as an attractive investment destination.

(with PTI inputs)