Despite selling in India's secondary market, foreign investors showed net buying in the primary market in 2024.

Foreign institutional investors (FIIs) have maintained net buying in India's primary market despite selling in the secondary market due to high valuations. In December, FIIs sold Rs 2,590 crore through exchanges but bought Rs 18,036 crore in the primary market. Throughout 2024, FIIs sold Rs 121,210 crore but bought Rs 121,637 crore in the primary market, showing net buying of Rs 427 crore. Experts suggest continued FII selling due to a strong US dollar and attractive US bond yields, but foreign investor return to India is aided by US policy changes, geopolitical stability, controlled inflation, and interest rates.

2 months ago
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