&w=553&resize=553,480&ssl=1 "FPIs’ holdings in Indian securities surpass trillion for the primary time | Information on Markets")
International portfolio traders (FPIs) have, for the primary time, amassed holdings in Indian securities exceeding the $1 trillion mark, a milestone underscoring the nation’s rising attract amongst international traders.
As of the tip of September 2024, FPIs’ belongings underneath custody in India reached $1.1 trillion (Rs 84.4 trillion), with $930 billion (Rs 78 trillion) invested in equities and the rest allotted to debt and hybrid devices, in line with information from Nationwide Securities Depository Restricted. This determine represents a threefold surge from a Covid-19 low of $329 billion (for the quarter ended March 2020). Throughout the identical interval, India’s market capitalisation has skyrocketed fourfold, reaching Rs 474 trillion ($5.6 trillion).
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Liberalised funding guidelines and a supportive regulatory framework have been instrumental in reaching this $1 trillion landmark.
At present, FPI fairness holdings account for 16.4 per cent of India’s complete market capitalisation — a decline from 20.1 per cent in December 2020, pushed by sturdy inflows from home mutual funds and retail traders.
India first opened its doorways to FPIs in 1992 (then referred to as international institutional traders, or FIIs), within the wake of the 1991 stability of funds disaster. In the beginning of NSDL’s information data in 2012, complete FPI belongings underneath custody stood at $243 billion (Rs 13.4 trillion). This determine surpassed $350 billion in 2014 and broke the $500 billion barrier in 2017.
The first sources of FPI flows into India embody the US, Singapore, and Luxembourg.
First Revealed: Oct 08 2024 | 12:05 AM IST
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