Mumbai: Rapid increase in India’s weight global indexDriven by the better performance of such as MSCI and FTSE, Indian market And the Fed’s rate cut in mid-September prompted foreign investors to put money into India in the September quarter. foreign portfolio investor Over ₹86,000 crore was invested in July-September, the highest in 15 quarters. In the December quarter of 2020, these investors invested about Rs 1.43 lakh crore in Indian shares.
Inflows from foreign funds into Indian equities were moderate in the first half of 2024 due to concerns over rich valuations and tight monetary policy in the US. Due to the weakening of the dollar after the rate cut in America and the increase in India’s weight on global indices, foreigners have increased their local stakes.
MSCI India Index The MSCI Emerging Markets Index has gained 26% this year, compared with a 13% rise during the period. This outperformance has led to more Indian companies being added to both the MSCI EM and MSCI IMI indices, while the weighting of underperforming Chinese stocks has been reduced. India’s weighting in the widely followed MSCI Emerging Markets index has increased to 20.7% compared to China’s 23.74%.
Foreigners have also been active in India Primary Market Including IPO. In 2024, FPIs invested over ₹65,000 crore in the primary market, while over ₹33,000 crore in the secondary market.
