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|April 2020||-6884 crores (money withdrawn)|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|September 2020||-7783 crore rupees (withdrawn money)|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.