Foreign portfolio investments in India increased to Rs 3,39,066 crore by the end of the previous fiscal, indicating the robustness and appealability of the country's financial structure. FPIs have invested Rs 1,71,248 crore in the current fiscal, year-to-date, as per the government. Foreign portfolio investors infused Rs 48,822 crore into Indian equities this month, till September 26, as per NSDL data. They have only increased their inflows into the market, thanks to the recent cuts by the US Fed.
The great success of the IPO market in India also speaks about the economic strength of it. It is not just Indian companies that are now getting listed, but also multinationals firms like Hyundai and LG, according to a report by the Ministry of Information and Broadcasting.
After growing by a jaw-dropping 66% in FY24, IPOs rose from 164 in FY23 to 272 in FY24. While that is exciting, the seriousness of the development is reflected in the increase in the amount raised during the period-an increase of 24%-that rose from Rs 54,773 crore in FY23 to Rs 67,995 crore in FY24.
September will be the busiest month for IPOs in 14 years, according to the Reserve Bank of India.
This step, apart from consolidating further the rising significance of India in the global financial system, also indicates that instead of outright acquisitions, these firms preferred to collaborate with local companies as a partnership with indigenous players provides strategic advantage in the peculiar business environment of this country.
"This trend reflects India's evolution from being merely a market to a pivotal partner in shaping global business strategies, further cementing its role on the international stage," the ministry said.
According to JPMorgan CEO Jamie Dimon, India is well-positioned to continue growing over the next 30 years because of its demographic advantage and strategic positioning within the global economy.
The growth potential in India continues to marry with liquidity and valuation dynamics, as observed by Dimon.
Currently the fourth-largest stock market in the world, India has seen three-fold daily average cash-trading levels shoot above the pre-Covid days.
According to the ministry, even though foreign portfolio inflows may have slowed in recent months, high-yielding markets and growth potential of the Indian economy continue to be in great demand.
According to JPMorgan's global head of capital markets, Kevin Foley, the buying spree by the retail sector brought about by high liquidity is believed to invite more foreign investments.
In its report, it held that India is capturing its demographic dividend by tapping a youthful population, a rising digital economy, and an expanding manufacturing base, embracing innovation toward driving sustainable economic development.
It added that the country's diversified capabilities range across services, manufacturing, and technology sectors, holding tremendous opportunities for development.
Read also| Sensex Declines by 264 Points; Power Grid and ICICI Bank Among Top Losers
