Foreign portfolio investors (FPIs) have pumped Rs 1.7 trillion into the Indian equity markets in 2023, propelled by confidence in the country’s robust economic fundamentals amid a challenging global landscape.
The year 2023 has witnessed massive investment by Foreign portfolio investors, thanks to the sharp uptick in inflows of Rs 66,134 crore in December.
Going forward, FPI flows are expected to be robust. However, their allocation is likely to be selective.
In 2023, FPIs made a net investment of Rs 1.71 trillion in equities and Rs 68,663 crore in the debt markets.
Together, they infused Rs 2.4 trillion into the capital market, as per the data available with the depositories.
The latest flow came after Indian equities witnessed a worst net outflow of Rs 1.21 trillion by Foreign portfolio investors in 2022 on aggressive rate hikes by the central banks globally. Before the outflow, Foreign portfolio investors invested money in the last three years.
FPIs made a net infusion of Rs 25,752 crore in equities in 2021, Rs 1.7 trillion in 2020, and Rs 1.01 trillion in 2019.
The increased focus on inflation has led to a considerable uptick in interest, particularly in the debt segment, where Foreign portfolio investors are continuously increasing their investments.
In terms of sectors, Foreign portfolio investors preferred the financial, IT, pharma, and energy sectors, owing to the country’s strength in technology and healthcare and commitment to sustainable development contributed to the appeal for foreign investors.
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nice information.