In August, the domestic equity market reached one of the highest Foreign Portfolio investors (FPI). Since the pandemic outbreak in 2020, US federal Reserves are standing firm on unwinding their stimulus measures in controlling inflation.

The FPI pumped a second time consecutively the event determines the positive foreign flows; in the preceding nine months, FPI has pumped over 32$ billion. FPI pumped to $6.5 billion in August, the third-highest tally since March 2020 and the highest since December 2020. The reversal in FPI has helped the domestic markets recover 16 per cent from their June lows. Bloomberg data shows that Indian equities were one of the biggest recipients of overseas flow.

UR Bhat, the co-founder of Alphaniti Fintech, stated that Comparatively to the other countries, India stands out as the only country where positive momentum is visible in terms of growth and economic activity. The FPI has continuously taken out capital from India since September 2021; FPI is trying to plow some of the profit back into India.

Commodity exporting nations such as Indonesia and Brazil have faced higher FPI inflows. However, India has been catching up faster than any other major global market. Because of improved FPI inflow, India has outperformed the MSCI emerging market index by 19 per cent since June-mid.