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Below Quote On FPI By Manoj Purohit, Partner & Leader – Financial Services Tax, BDO India

“Foreign Portfolio Investors (FPIs) continue to be bullish on India Markets in comparison to the other Emerging and Developed Markets. The testimonial to this is the consistent buying trend seen since October 2022. So far, FPIs have infused more than INR 30,000 crore in equities as per recent data. The Indian equity market has managed to attract foreign investors and the credit goes to the steady performance of the Indian economy despite the global headwinds of the ongoing military war, fluctuating fed rates and fear of recession knocking on the door. A few other factors that are driving the India growth story and attracting foreign investments are the highest ever tax collection numbers, upward shift in domestic consumption due to the festive season, reporting of positive corporate earnings, strong valuations, successful IPOs, Government efforts in announcing regulations for attracting offshore investors for capital infusion in start-ups, angel funds and promoting digitisation, innovation and the technology space. Other Emerging Markets such as Brazil, Indonesia, Taiwan etc. are also seeing a similar trend in terms of foreign cash flows. We expect the aggressiveness in pumping cash into equities to continue in the coming months as well. With the slowing down on hiking of rates, inflation under control and the economy being well incubated, we see no reason for India to not be in the leading position and most preferred choice by the international community, not only for equity but also other markets in the long term.”

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