FPIs Stage Spectacular Comeback, Injecting Rs 1.7 Lakh Crore into Indian Markets in 2023

Foreign Portfolio Investors (FPIs) stage a remarkable comeback, injecting confidence into India’s economic resilience with a substantial Rs 1.7 lakh crore investment in the equity markets. December witnesses a surge, contributing Rs 66,134 crore to the impressive inflow.

2023 data reveals a significant turnaround from the Rs 1.21 lakh crore outflow in 2022, with FPIs channeling Rs 1.71 lakh crore into equities and Rs 68,663 crore into debt markets.

The resurgence follows India’s economic robustness and newfound political stability, attracting FPIs back after a three-year hiatus. The debt market witnesses a paradigm shift as FPIs pour Rs 68,663 crore in 2023.

JP Morgan’s landmark announcement to include Indian government bonds in its emerging market index by June 2024 further propels the surge, with expectations of USD 20-40 billion inflow beneficial for India’s economy.

In a sectoral preference, FPIs favor finance, IT, pharma, and energy, recognizing India’s strengths in technology, healthcare, and commitment to sustainable development.

As the market continues to ride the FPI wave, experts project a continued secular inflow in the coming months, signaling optimism for both equity and debt markets in India.

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