FPI Investment In Share Market: In the last one year, foreign portfolio investors have invested heavily in the stock market. FPI has invested about Rs 64,824 crore in the Indian market in the last 12 months (August 2023 to August 2024 till now). During this period, FPI has bought Rs 1,82,965 crore and sold Rs 1,18,141 crore in the last one year. However, in August, there is more of a selling environment instead of investment. Till August 14, Rs 18,824 crore has been withdrawn. However, during this period, Rs 8,624 crore has been invested in the debt market.

Why are FPIs investing in India?

According to data from the National Securities Depository Limited (NSDL), so far in August, FPIs have been selling. Foreign investors have withdrawn Rs 18,824 crore from equities till August 14. However, during this period, Rs 8,624 crore has been invested in the debt market.

There are many reasons for foreign investors to invest in the Indian market compared to other markets. Experts say that a good growth rate, stable government, reduction in inflation, financial discipline maintained by the government, and efforts to make India a hub of capital market are the main reasons for the increase in foreign investment in the stock market.

India's economy is growing rapidly. India's GDP grew at the rate of 8.2 percent in the financial year 2023-24. It is estimated to grow at the rate of 7.2 percent in the financial year 2024-25. The inflation rate in India is also continuously decreasing. The retail inflation rate stood at 3.54 percent in July, which was 5.08 percent in June.

Big improvements expected

Sunil Damania, Chief Investment Officer, MojoPMS, says that there are many reasons behind the increase in FPI investment. First, the government has assured that the reforms will continue in this term as well. Second, the fall of China's economy, which you can guess from the price of copper, which fell by 12 percent last month. Third, some block deals have also been done by FPI.