NEW DELHI: Foreign investors made a strong return by injecting more than Rs 2 lakh crore into Indian equities in 2023-24, driven by optimism surrounding the country’s robust economic fundamentals amidst a challenging global environment.
Looking forward to 2025, Bharat Dhawan, Managing Partner at Mazars in India, said that the outlook is cautiously optimistic and anticipates sustained FPI inflows supported by progressive policy reforms, economic stability, and attractive investment avenues. “However, we remain mindful of global geopolitical influences that may introduce intermittent volatility, emphasising the importance of strategic planning and agility in navigating market fluctuations,” he added.
The outlook for FY25 from an FPI perspective, continues to remain strong, Naveen KR, smallcase Manager and Senior Director at Windmill Capital, said.
In the current fiscal 2023-24, Foreign Portfolio Investors (FPIs) have made a net investment of around Rs 2.08 lakh crore in the Indian equity markets and Rs 1.2 lakh crore in the debt market. Collectively, they pumped Rs 3.4 lakh crore into the capital market, as per data available with the depositories. The dazzling resurgence came following an outflow from equities in the preceding two financial years.
In 2022-23, Indian equities witnessed a net outflow of Rs 37,632 crore by FPIs on aggressive rate hikes by the central banks globally. Before this, they pulled out a massive Rs 1.4 lakh crore. However, in 2020-2021, FPIs made a record investment of Rs 2.74 lakh crore.