Foreign portfolio investors (FPIs) continue to remain net buyers for the third consecutive month in Indian stock markets. Data from the National Securities Depository Limited (NSDL) revealed that FPIs purchased stocks worth Rs 35,098 crore in March, following February’s acquisition of Rs 1,539 crore. April also saw FPIs buying stocks worth Rs 1,590 crore, indicating sustained interest in Indian equities.
Factors such as optimistic GDP growth forecasts, stable inflation rates, political certainty at the central government level, and indications of the central bank’s monetary policy stance have contributed to a positive outlook for the Indian economy. India’s GDP surged by 8.4% in the October-December quarter of the fiscal year 2023-24, solidifying its position as the fastest-growing major economy.
Foreign investors shifted gears after a sell-off in January, having previously shown considerable interest by accumulating Indian stocks in November and December. In December alone, they amassed stocks worth Rs 66,135 crore, bolstering benchmark stock indices to record highs. This resurgence followed lukewarm FPI participation earlier in the year, with net selling in September and October. However, prior months showcased significant FPI investments, highlighting their confidence in the Indian market’s potential.
Overall, 2024 has seen substantial foreign investment, with inflows totaling approximately Rs 171,107 crore. The recent buying spree by FPIs underscores the attractiveness of Indian stocks amidst a backdrop of economic certainty. As global investors continue to show faith in India’s growth story, the country remains a favorable destination for foreign capital inflows.
The sustained influx of foreign investment bodes well for the Indian economy, signaling confidence in its growth trajectory and long-term prospects. With a favorable investment climate and robust economic fundamentals, India remains an appealing proposition for foreign investors looking to capitalize on emerging market opportunities.
