Due to India’s robust growth expectation for FY 2025, foreign portfolio investors (FPIs) poured in Rs 54,727 core in stock and debt in July.
India’s growth rate for 2024–2025 was predicted by an economic survey that was submitted this year before the Union Budget to be between 6.5 and 7 percent.
According to market analysts, foreign portfolio investors (FPIs) invested Rs 32,364 crore in stock and Rs 22,363 crore in debt in July, citing data from National Securities Depository Limited (NSDL).
FPI investment in equity for the entire year is Rs 35,565 crore in the nation.
The robust economic outlook, rate reductions, and government fiscal restraint are cited by experts as the three main causes of the significant influx.
Experts stated: “There are a number of reasons why FII flows into India might rise. First off, investors are drawn to India because its economy is doing better than many of its counterparts throughout the world. Second, investors are likely to look elsewhere, notably India, for better profits as the risk-free rate in the USA is predicted to decline. Thirdly, India’s investment attraction may increase if it receives a rating upgrade due to the government’s strong fiscal discipline.”
The success of the international equity markets, changes in the dollar index, small-scale geopolitical developments, and opportunities in the Indian markets with somewhat higher valuation levels are some of the variables that impact FPIs’ operations.
A different analyst stated: “This resurgence can be attributed to a stable political environment, ongoing economic reforms, and appealing market valuations within India.”
