Winning Bizness Desk

Mumbai. In a year marked by a stock market surge and robust IPO activity, Foreign Institutional Investors (FIIs) have invested a net total of Rs 1,00,245 crore in Indian equities from January to September 2024. With one trading day left in September, FIIs have already poured Rs 57,359 crore into Indian markets so far this month. According to data from the depository, FIIs made significant net purchases of Rs 7,322 crore in August, Rs 32,359 crore in July, and Rs 26,565 crore in June. However, April and May saw outflows exceeding Rs 34,000 crore due to political uncertainty surrounding the general elections. Concerns that the ruling government might not secure a third term led FIIs to divert investments to other markets. Prior to that, FIIs had invested around Rs 37,000 crore in February and March, but January saw withdrawals of Rs 25,744 crore.

Indian market has consistently outperformed

Analysts attribute the renewed inflows to expectations of lower returns on fixed-income instruments, such as fixed deposits, as global interest rates begin to drop. Additionally, the Indian market has consistently outperformed other global markets, making it an attractive investment destination for foreign investors. With three months still left in the year, experts predict that FII investments could exceed Rs 1.50 lakh crore by the end of 2024, given the continued positive market performance and India's strong economic fundamentals.

What is an IPO

When a company issues its shares to the general public for the first time, it is called Initial Public Offering (IPO). The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings an IPO.