FPIs infuse ₹2 lakh crore into Indian markets in FY24
The financial year 2024 witnessed a significant surge of foreign portfolio investors (FPIs) in India's thriving markets. A staggering ₹2 lakh crore was invested by FPIs, marking a robust influx of foreign capital. Nearly half of this investment, amounting to ₹1.08 lakh crore, was channeled into three key sectors: capital goods, consumer services, and automobile and auto components.
Capital goods sector attracts highest FPI inflows in FY24
The capital goods sector emerged as the most attractive for FPIs, drawing in ₹46,680 crore throughout FY24. This sector experienced consistent inflows each month of the fiscal year. The highest monthly investment was recorded in August at ₹8,336 crore. The last quarter alone saw a net investment of ₹8,391 crore by FPIs into capital goods.
Consumer services sector sees surge in FPI investments in FY24
The consumer services sector ranked second in attracting FPI investments, with a total of ₹32,198 crore invested during FY24. A significant surge was observed particularly in the final two months of the fiscal year. Excluding October, each month saw inflows into this sector. February and March alone witnessed FPIs purchasing stocks worth ₹12,179 crore.
Automobile and auto components sector draws FPI attention in FY24
The automobile and auto components sector also garnered significant attention from FPIs, with investments totaling ₹29,554 crore during FY24. Except for October 2023 and January 2024, this sector experienced steady inflows throughout the fiscal year. This consistent investment trend underscores the growing interest of foreign portfolio investors in India's auto industry.
Other sectors also attract substantial FPI investments in FY24
Other sectors including telecom, healthcare, and financial services also attracted significant FPI investments exceeding ₹10,000 crore each in FY24. However, the financial services sector experienced heavy selling in the last quarter with outflows surpassing ₹30,000 crore in January alone. Despite this setback, these sectors collectively contributed to the overall robust influx of foreign capital into India's markets during the fiscal year.
