The FPI Favourites & Unfavoured

Foreign portfolio investors (FPIs) are individuals or entities that make investments in the financial assets of other countries.

One of the fastest growing economies and most stable currencies compared to others has strengthened India’s macroeconomic outlook, thereby attracting foreign investors.

Despite some recent unease, the Indian equity markets have maintained their position as one of the top-performing global equity indices since April 2023. Frontline equity indices have experienced robust growth in the mid-teens, while broader equity indices have surged in the mid-twenties. This impressive performance can be attributed to several factors, including a favourable domestic macroeconomic environment and the anticipation of India experiencing one of the highest growth rates in the coming years. This positive outlook has also captured the attention of foreign investors, further bolstering the market’s upward trajectory.