Cumulative flows by domestic institutions and foreign portfolio investors crossed the Rs 4 trillion mark in FY24, defying the usual diametrically opposite stance by the two segments.
FPIs poured in Rs 2.04 lakh crore over the 12-month period ending March 2024, while DIIs surpassed the figure by investing Rs 2.06 lakh crore.
This marks a shift from the traditional pattern where high inflows by FPIs often coincide with outflows by DIIs, and vice versa.
The highest ever cumulative flows were led by record investments made by foreign investors, as well as inflows from mutual funds.
Foreign Investors Bullish On India
India emerged as a favoured destination for foreign investors, with brokerages like Morgan Stanley taking an 'overweight' stance, citing stable GDP growth and a focus on capital expenditure as key drivers.
Foreign flows into Indian equities amounted to the highest ever in a fiscal since FY21.
December 2023 saw a record Rs 66,100 crore of net inflows, the highest ever in a month since November 2020.
Mutual Funds Lead Domestic Institutional Flows
Domestic flows crossed Rs 2.06 lakh crore during the current fiscal, led by a growing mutual fund industry.
Investments by mutual funds into equity schemes even outpaced those by DIIs as a whole.
Mutual funds invested over Rs 1.61 lakh crore in the March 2023-February 2024 period, as compared with an inflow of Rs 1.53 lakh crore made by DIIs.
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