Foreign Funds Flow Back In: A Cautionary Tale for Domestic Investors The recent influx of Rs 20,200 crore into Indian equities by foreign portfolio investors (FPIs) has been touted as a welcome return to form after four months of selling.
However, beneath the surface lies a more complex story that raises important questions about the resilience of our domestic market and the sustainability of this inflow.
The FPIs' decision to re enter the Indian equity scene is driven by improving corporate earnings and attractive valuations on offer.