Foreign investors have made a great comeback to Indian share market, investing a net amount of Rs 21,789 crore in December as of now. Notably, the Indian share market saw substantial outflows in previous months. Foreign Investors had withdrawn a net amount of Rs 21,612 crore in November and a record-breaking Rs 94,017 crore in October.

How Foreign Investors Impacts The Share Market?

Inflows from foreign investors inject fresh liquidity into the stock market. These investors typically focus on companies with strong growth potential, which can increase demand of their stocks. This leads to high value of their stocks. As a result, share prices may rise, and the overall market may experience a boost in performance.

Additionally, the involvement of foreign investors brings diverse perspectives and investment strategies. This contributes to a more robust and balanced market ecosystem.

Meanwhile, a surge in foreign investment may strengthen the Indian Rupee, as foreign investors’ demand for Rupees to purchase Indian stocks increases. Notably, when the Rupee strengthens, imports become cheaper.

Trend This Year

Foreign investors sold the India listed shares worth Rs 94,017 crore in October. From June to September, they were net buyers, for four consecutive months. Given below is the table of the trend of foreign investment in India in 2024, so far.

This shows the inflows and outflows for each month, as well as the total inflow for the year so far.