$8 billion bet! FPIs net buyers in FY24; has the tide turned?

Foreign investors have increased the inflow of equity to India over the past two months, with $8.4bn flowing in. This compares to net outflows in the previous two financial years. This shift has helped the Indian indices gain almost 8% in the current financial year, leaving them 200 points away from a record high. Professionals believe this is due to what they call the “3G” factor of India: better growth, improved governance and a greater commitment to the environment. As a result, FPIs are likely to keep considering these factors when allocating funds to the Indian market.