Topic 2: STRONG NUMBERS MORE FPIS

India has remained among the favourite investment destination for Foreign Portfolio investors (FPIs) for the month of May 2023 with the total investment of Rs 43838 crores. A recent survey showed that among FPIs India is now the consensus overweight among all emerging markets, and that the country attracted the largest investment among all emerging markets across the world. In May, India attracted the largest investment whereas FPIs were sellers in China. Post Adani Hindenburg episode the FPIs shy away with the highest ever withdrawal from Indian markets. SEBI regulator acted promptly and proposed to FPIs to disclose the ultimate beneficiaries of the high risk FPI funds. SEBI proposed to tighten the disclosure standards for foreign portfolio investors (FPI) that own more than 50 per cent or more of their equity assets under management (AUM) in a single corporate entity. Since SEBI suspects involvement of some high-risk FPIs across the Indian companies. Despite these norms the FPIs continue to manage their streak. The release of latest economic data revealed the strong macroeconomic fundamentals this is due to India’s strong credit growth, industrial capex recovery, and strong corporate balance sheets. The growth factors are important for the FPIs. With the continuous buying by the FPIs Nifty has gained positively, the sectors which remained among the favorites for FPIs are financials, automobiles, telecom, and construction. The FPIs have not only put their money in equities but also in debt markets too. The data showed Rs.3276 crores were invested by FPIs in the month of May 2023. With the strong and robust economic growth story India remained the favourite investment destination, hoping upcoming SEBI regulations will not hinder the future of FPIs in India.



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