Why and how much foreigners are putting money in the Indian stock market… the government has given information… what will be the effect on common investors

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Stock Market India: In the financial year 2020-21, an investment of Rs 2,74,034 crore has been done in the stock market in India through FPIs. How will these big investments affect Indian investors? What does it mean for the economy?

Foreign investors invested Rs 274034 crore in Indian stock market

Foreign investors can invest in India in two ways. One does it through FDI. That is, these investors buy a stake in an Indian company. These investors buy a stake in a project. Simply put, these investors invest in India and prepare infrastructure to give jobs to people. On the other hand, FPIs invest money in listed companies, bonds, currency markets in the stock market. Now let us know how much investment has come in a year.

Government released data

Month Stock market investment
April 2020 -6884 crores (money withdrawn)
May 2020 14569 crores
June 2020 21832 crores
July 2020 7563 crores
August 2020 47080 crores
September 2020 -7783 crore rupees (withdrawn money)
October 2020 19541 crores
November 2020 60358 crores
December 2020 62016 crores
January 2020 19473 crores
February 2020 25787 crores
March 2020 10952 crores
Total for the financial year 20-21 274034 crores

Foreign portfolio investors (FPIs) continued their investment in Indian markets for the third consecutive month in March. In March, FPI made a net investment of Rs 17,304 crore in Indian markets.

According to data from depositories, FPI invested Rs 10,482 crore in shares and Rs 6,822 crore in debt market during March 1-31.

Thus his net investment was Rs 17,304 crore. Earlier, FPI had invested Rs 23,663 crore in Indian markets in February, whereas in January, they had infused Rs 14,649 crore in the domestic market.

Why are foreign investors investing money in the Indian stock market

Experts say that due to expectations and the recovery in the US economy, foreign investment is coming in emerging markets like India.

There is extreme liquidity in the global financial markets after the US announced a $ 1.9 trillion pandemic relief package. It is flowing towards emerging markets like India.

What will happen next?

Investments in Indian markets are being affected by rising cases of COVID-19 infection. During the second wave of Corona, the market is largely stagnant due to vaccination campaign and improvement in economy.

Experts believe that there is a huge fluctuation in the stock market. They are only there for a day or two. Because global signs are positive, corona vaccination continues rapidly in India. In such a situation, investors have a good chance of shopping on the decline.

Also read- Business will give your capital, the government will also earn you! You will get a loan of up to 1 crore, apply this way

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Bhagyashree Soni
Bhagyashree Soni
Bhagyashree Soni is a software engineer with soft writing skills. She is a degree holder from the International School of Entrepreneurial Leadership. She has been a state-level badminton champion and chess player. A woman with a forthright attitude enjoys her writing passion as her chosen career. Writing in the context of feminism, social-cause and entreprenurship is her forte.
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