Foreign portfolio investors have shown a significant resurgence in their investment activity within the Indian equity markets this month, injecting over 38,000 crore rupees, mainly driven by favourable shifts in the global economic scenario and a strong domestic macroeconomic outlook. The investment came following a modest investment of 1,539 crore rupees in February, and a massive outflow of 25,743 crore rupees in January. With this, foreign portfolio investors’ (FPIs) investment has turned positive to the tune of 13,893 crore rupees in equities so far in 2024 and 55,480 crore rupees in the debt market.

The improved global economic conditions and positive Indian macroeconomic scenario have driven FPIs to invest in high growth-oriented markets like India. The influx of FPIs can be attributed to robust GDP growth and expectations of a potential shift in the RBI’s policy in the latter half of fiscal 2025.

Apart from equities, FPIs have injected a massive 13,223 crore rupees into the debt market this month till March 22. This came in the backdrop of Bloomberg announcing India’s bonds inclusion in its Emerging Market (EM) Local Currency Government Index and related indices from January 31 next year. FPIs have been investing in the debt markets for the past few months. They invested 22,419 crore rupees in February and 19,836 crore rupees in January this year.