In the past 12 months, from August 2023 to August 2024, foreign portfolio investors (FPIs) have made investments in the Indian share market totaling Rs 64,824 crore.
Depositories data shows that FPIs invested a total of Rs 1,82,965 crore and sold off a total of Rs 1,18,141 crore in the previous year.
Up to August 14, FPIs withdrew Rs 18,824 crore from stocks. Nonetheless, a total of Rs 8,624 crore was invested in the debt market during this time.
When compared to other markets, there are numerous reasons why international investors should consider the Indian market. The primary causes of the rise in foreign investment in the stock market, according to experts, include India’s strong growth rate, stable governance, declining inflation, financial restraint on the part of the government, and initiatives to establish the country as a capital market hub.
In FY 2023–2024, India’s GDP grew at a pace of 8.2%. In the current fiscal year, growth at a rate of 7.2% is anticipated.
In India, the rate of inflation is likewise steadily declining. In July, the retail inflation rate was 3.54%, compared to 5.0% in June.
“There are numerous reasons behind the increase in FPI investment,” stated other analysts. First off, the administration has promised to keep up the changes during this time. Secondly, the slowdown in China’s economy, as demonstrated by the 13% drop in copper prices in the last month. Third, FPI has completed a few block deals.”
Over the past year, there has been a remarkable surge in the Indian stock market. The benchmark Sexsen index of the Bombay Stock Exchange (BSE) increased by 21% during this time, while the BSE’s National Stock Exchange saw a 25% increase in the previous year.
