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Below the Quote on FPI By Vipul Bhowar, Director Listed Investments, Waterfield Advisors

"In July 2024, Foreign Portfolio Investors (FPIs) injected approximately ?37,957 crore into Indian equities, marking a continuation of their recovery from previous withdrawals in April and May attributed to prevailing uncertainties. This resurgence can be attributed to a stable political environment, ongoing economic reforms, and appealing market valuations within India.

On the contrary, in the United States, a potential rate reduction by the US Federal Reserve may incentivise FPIs to amplify their investments in India as they seek higher returns. However, concerns surrounding a looming recession or stagnant job growth in the US could prompt FPIs to adopt a more cautious approach, potentially resulting in investment flow volatility.

Additionally, FPIs may opt to prioritise sectors that stand to benefit from domestic reforms and growth, such as technology and infrastructure, while approaching sectors vulnerable to global economic downturns with prudence."

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