Year 2023: Amidst ups and downs in the global economy, India became the choice of foreign investors, invested Rs 1.5 lakh crore this year.

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Year 2023: The month of December saw the longest rise in the Indian stock market in the last six years. Meanwhile, there was special enthusiasm among investors regarding the IPO. This came after the Fed signaled the end of a tightening cycle, causing US bond yields to decline, with the 10-year term falling below 4%. Due to this, foreign investors turned towards the Indian market. There is now near consensus in the global investment community that India has the best prospects among emerging economies for sustained growth for many years to come. Following the inclusion of India in the JP Morgan Emerging Markets Bond Index, there is a lot of enthusiasm to invest in Indian government bonds. Its effect was seen on the Indian market that foreign portfolio investors (FPI) has injected about Rs 1.5 lakh crore into the Indian stock market in 2023. Experts believe that this positive trend of FPI is expected to continue in the next year i.e. 2024 also.

The direction of the market will be decided by many things

Himanshu Srivastava, Associate Director-Manager Research, Morningstore India, said that going forward, political stability and economic growth will be the main issue for foreign investors amid the general elections to be held next year. Apart from this, the inflation and interest rate scenario at the global level will decide the direction of foreign inflows into Indian stocks. He said that with its strong economic growth, India will remain the center of attraction for FPIs. According to depository data, so far this year, foreign portfolio investors have invested a net amount of about Rs 1.5 lakh crore in Indian stock markets. Apart from this, he has also invested about Rs 60,000 crore in the loan or bond market. Overall his investment has been more than Rs 2 lakh crore. Due to improvement in political stability after BJP’s victory in recent elections in three important states, out of Rs 1.5 lakh crore investment in stocks, about Rs 43,000 crore has inflowed in the first two weeks of December. It is believed that this could be the best year for FPI inflows. FPIs had put in a net amount of Rs 25,752 crore in shares in 2021, Rs 1.7 lakh crore in 2020 and Rs 1.01 lakh crore in 2019.

The factor was different for foreign investors in 2022

Himanshu Srivastava said that the inflow of foreign investors in 2022 will largely depend on factors such as inflation and interest rate scenario in developed markets like US and UK, currency fluctuations, crude oil prices, geopolitical scenario and health of the domestic economy. was inspired. VK Vijayakumar, chief investment strategist, Geojit Financial Services, said that India is the top investment destination for FPIs. There is a general consensus among the global investor community that India is best positioned among emerging economies for sustained growth in the coming years.

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