FPIs Inject Rs 3,864 Crore Into Indian Equities In Early Phase Of New Year

Foreign portfolio investors kicked off the new year cautiously, investing Rs 3,864 crore in Indian equities during the first two weeks of January. This move comes amid increased geopolitical tensions, reflecting a careful approach by investors.

The inflows have decelerated compared to what was witnessed in Dec. 2023, following the record-setting month where investments reached an all-time high of Rs 66,135 crore.

India received the highest-ever foreign portfolio inflows in 2023 and surpassed emerging market peers amid global volatility and valuation concerns.

Foreign investors net-bought Indian equities worth Rs 1.71 lakh crore as of Dec. 29, according to National Securities Depository Ltd. That's more than the previous record of 1.70 lakh crore.

Meanwhile, according to NSDL data, foreign investors maintain a positive outlook on the debt market, injecting Rs 7,912 crore during the period under review.

The surge in debt flows is attributed to the inclusion of domestic bonds in JPMorgan's Emerging Market Global Bond Index. This factor has significantly influenced the increased flow of funds into the country's bond markets in recent months.

In 2023, foreign inflows defied global volatility, geopolitical tensions and concerns about froth in the market as India's broader indices outpaced Nifty and Sensex. The Nifty 50 gained over 19% and the Sensex rose 18% this year, recording an eight-year winning streak.