FPIs' India frenzy is now at a nine-year peak
MUMBAI : Foreign portfolio investment (FPI) net inflows into Indian equities and debt in 2023-24 have reached a nine-year high, showed data from the National Securities Depository Ltd (NSDL). At ₹2.68 trillion, this is just ₹9,625 crore away from 2014-15’s record net inflows of ₹2.77 trillion. In monthly average terms, foreign portfolio investors have invested net ₹29,780 crore in Indian equities and debt this fiscal.
With three months left for the close of 2023-24, the final figure could set a new record for FPI. Between equity and debt, the former accounts for net flows of ₹2.02 trillion, while debt investments stand at ₹66,105 crore. In 2014-15, the year that the Narendra Modi government first came to power, equity inflows were at ₹1.11 trillion, while net debt inflows stood at ₹1.66 trillion.
Inflows have jumped thanks to expectations of robust corporate earnings; global fund purchases ahead of India’s upcoming inclusion in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM); and the widening spread between the yields of US and India 10-year bonds. “FPI inflows are likely to remain strong owing to robust corporate earnings performance," said Gautam Duggad, head of research, institutional equities, Motilal Oswal Financial Services. Duggad anticipates Nifty earnings to grow by 10% in the December quarter, following a strong 28% growth in the September quarter.
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