Achi news desk-
Further, most analysts have given a positive outlook on India’s stock market for FY25 as well.
Foreign portfolio investment (FPI) inflows in India’s equities turned positive in the financial year 2024 (FY24). FPIs have infused Rs 2.08 crore in the current fiscal. Analysts attribute the turnaround to optimism surrounding the country’s strong economic fundamentals amid a challenging global environment. Naveen KR, category manager and senior manager at Windmill Capital, said that economies such as the UK and Japan have fallen into recession, Russia and Ukraine are still at war, US inflation is red-hot and the soft-landing vs. hard-landing debate is still ongoing, while China has become the global anti-hero. Therefore , he concluded that India has stolen the limelight and is delivering numbers with strong GDP growth even amid a tough business environment.
While, Himanshu Srivastava, Associate Director – Research Director, Morningstar Investment Research India, said, “Investors have increasingly favored Indian equities, drawn by the market’s demonstrated resilience during uncertain times. Compared to other peer markets, India’s economy has stood out as more robust and stable amid global economic turmoil , and attracted even more foreign investment.”
As a result of robust FPI buying in FY24, Nifty Realty has given returns of 136% in the current fiscal. Nifty PSU Bank gave 90 percent return. Nifty Auto gave 76 percent return. The 50-component Nifty 50 rose 30%, the benchmark ended the financial year at 22,326 points.
Further, most analysts have given a positive outlook on India’s stock market for FY25 as well. Looking ahead to 2025, Bharat Dhawan, managing partner at Mazars India, said the outlook is cautiously optimistic and foresees continued FPI inflows supported by progressive policy reforms, economic stability and attractive investment avenues.
The outlook for FY25 from an FPI perspective, continues to remain strong, said Naveen KR, small portfolio manager and senior director at Windmill Capital.
Prior to this, FPIs were net sellers in FY23 and FY22. Although, they were net buyers of domestic stocks in FY21. In fact, FPIs recorded an all-time record inflow of Rs 2.74 lakh crore in FY21.
Published: March 29, 2024, 7:46 PM IST
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