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Massive 99% Decline in Foreign Portfolio Investment Inflows to Rs 2026 Crore in 2024

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indiatimesINDIATIMES
Massive 99% Decline in Foreign Portfolio Investment Inflows to Rs 2026 Crore in 2024

Credited from: INDIATIMES

  • India's Foreign Portfolio Investment (FPI) inflows dropped sharply by 99% in 2024, falling to Rs 2,026 crore from Rs 1.71 lakh crore in 2023.
  • The decline is attributed to the strong US economy, which has attracted significant investment into US assets, diverting funds away from emerging markets like India.
  • Factors such as high valuation, declining GDP growth, and sluggish corporate earnings made Indian markets less appealing to foreign investors.
  • The RBI's tightened liquidity measures and tighter lending rules have negatively impacted Indian banks, prompting FPIs to sell $35 billion in shares within this sector.
  • Despite these challenges, FPIs remain optimistic about India’s long-term growth and have shown interest in primary markets, supported by a strong domestic investor presence.

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