look news india
Mumbai: After seeing strong returns, foreign portfolio investors (FPIs) are once again getting attracted to invest in Indian stock markets. India's bright economic picture and challenging global environment prompted FPIs to invest heavily again in FY 2023-24, with over Rs 2 lakh crore invested in stocks during the year.
According to experts, the outlook for the year 2025 is cautiously optimistic and FPEI inflows may also increase as investment attractiveness increases due to continued policy reforms and economic stability. However, due to global geopolitical factors, markets may experience volatility. In FY 2023-24, FPIs have made a net investment of Rs 2.08 lakh crore in Indian stock markets and Rs 1.2 lakh crore in debt markets.
Depository data shows that overall there has been investment of Rs 3.4 lakh crore in the capital market. This investment inflow has been followed by outflows from shares in the last two financial years. Interest rate hike by global central banks led to net selling of Rs 37,632 crore by FPIs in Indian stocks in 2022-23. Earlier, investment of Rs 1.4 lakh crore was made by FPI. However, in the year 2020-21, FPI made a record investment of Rs 2.74 lakh crore.
The flow of foreign investors is mostly from America and Britain. This has depended on factors such as inflation and interest rate conditions in developed markets. The boom seen in the market during the period of uncertainty has increased the attraction of investors towards investing in Indian shares. US inflation remains high and interest rates are likely to remain high, with countries such as the UK and Japan sliding into recession, while wars in Russia and Ukraine continue. While there is still uncertainty in China, the attraction of investors in Indian markets has increased.