Foreign Portfolio Investors (FPIs) made a strong comeback in June 2024 with a net inflow of Rs.12,170 crore into the Indian equity market.
They were net sellers for most of 2024 due to global economic uncertainty and rising interest rates in developed markets. However, foreign portfolio investors turned net buyers in June 2024, after the general election results
Despite FPIs being net sellers in the broader equity markets during FY22 and FY23, they invested Rs.57,044 crore in the top 100 small-cap companies.
As of January-end 2024, the value of foreign holdings in the Indian stock market touched nearly Rs.62 trillion.
Foreign investors now own a smaller share of the Indian stock market compared to earlier periods, with their holdings accounting for around 16.3% of the total market.
The total amount of foreign investments in the Indian equity market is a dynamic figure and fluctuates based on daily trading activities.
FDI inflows have been relatively stable in recent years. The Indian government has taken several measures to attract more FDI, such as liberalizing FDI norms and simplifying the investment process. Some of the sectors that have attracted significant FPI and FDI inflows in recent years include financial services, information technology, consumer goods and pharmaceuticals.