News Brief
Foreign Portfolio Investors Propel Indian Equity Markets To New Highs With Record $5.15 Billion Inflows In First Half Of December
(Representative Image)
In a noteworthy development, foreign portfolio investors (FPI) have taken center stage in the Indian equity market, marking their highest-ever purchases during the initial half of December, as per data from the National Securities Depository and reported by Economic Times.
What's Driving the Surge:
FPI inflows soared to INR 427.33 billion ($5.15 billion), propelled by factors like lower US bond yields and expectations of Federal Reserve interest rate cuts.
The Reserve Bank of India's upgraded growth forecast, along with positive state election outcomes, further boosted investor confidence.
Analysts anticipate the trend could lead to the highest monthly level since August 2022 if it continues through the rest of the month.
FPIs, having turned net buyers in November after two consecutive months of selling, have been influenced by India's robust economic outlook, projecting close to 7 per cent multi-year GDP growth.
Jefferies analysts also forecasted nearly 15 per cent earnings growth for Nifty 50-listed companies in fiscal 2025.
Meanwhile, India's benchmark indexes, Nifty 50 and BSE Sensex, experienced a 6.6 per cent rise each in the first half of December, on track for their best month since July 2022.
Fiscal 2024 FPI inflows reached INR 1.74 trillion as of 15 December, positioning for the highest level since 2021.
This comes after consecutive years of FPI sell-offs in Indian shares during fiscal 2022 and 2023.
The surge reflects positive sentiment among foreign investors, driven by favorable economic indicators and India's growing appeal as an investment destination.
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