look news india
Mumbai: After the increase in investment in Indian shares by foreign investors in the year 2023, a big decline has been seen in the year 2024. Due to expensive valuations in stocks and geopolitical uncertainty, cautious buying of Indian stocks by foreign investors in 2024 has been only Rs 5000 crore. But recovery in FPI investment is expected in the year 2025.
So far in the year 2024, foreign portfolio investors (FPIs) have registered an investment of only Rs 5052 crore in the Indian stock markets. Depository data shows that the debt market is worth Rs 1.12 lakh crore. In the year 2023, FPIs recorded a huge net investment of Rs 1.71 lakh crore in shares. While the negative factor of sharp increase in interest rates by global central banks in the year 2022 resulted in a net outflow of Rs 1.21 lakh crore.
This investment was the net investment by FPIs in the three years 2019, 2020 and 2021, before the OAT. In the year 2024, FPI investment was in January, April and May, October and November. Which is seen due to global and local factors.
The decline in FPI investment in Indian equities has been due to overvaluation of particular stocks. Along with this, geopolitical tension is also becoming a major reason for selling by foreign investors.
Meanwhile, in the year 2024, FPI has invested Rs 1.12 lakh crore in the Indian debt market. Which is more than Rs 68,663 crore in 2023. The biggest selloff in equity-shares by FPIs has been in the financial services sector worth Rs 54,500 crore. This is followed by Rs 50,000 crore in oil and gas sector and Rs 20,000 crore in FMCG.