{"id":1588,"date":"2019-07-08T06:54:00","date_gmt":"2019-07-08T06:54:00","guid":{"rendered":""},"modified":"2025-11-07T11:29:42","modified_gmt":"2025-11-07T05:59:42","slug":"indian-stock-market-benefit-from-increase-investment-inflow-from-fpis-fiis","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/indian-stock-market-benefit-from-increase-investment-inflow-from-fpis-fiis\/","title":{"rendered":"How Does Indian Stock Market Benefit From Increase Investment Inflow From FPI’s & FII\u2019s?"},"content":{"rendered":"
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Foreign Portfolio Investors (FPI\u2019s) & Foreign Institutional Investors (FII\u2019s) have been one of the biggest drivers of Indian stock market<\/a>. According to data available publicly, Foreign Portfolio Investors (FII\u2019s) & Foreign Institutional Investors (FII\u2019s) have invested over US$ 171.81 billion in India during the period between the years 2002 to 2018.  FPI\u2019s & FII\u2019s find India an attractive destination because of the highly developed Indian stock market<\/a>.<\/p>\n\n\n\n

Though currently there is a lot of sell-off by FPI\u2019s post the FPI tax<\/a> announced in Budget<\/a> 2019 the overall picture looks positive. Prime Minister\u2019s Office (PMO) and finance ministry\u2019s top bureaucrats recently held discussions over the suggestions and submissions by foreign portfolio investors (FPIs) regarding the surcharge issue. FPIs have sought rollback of surcharge. If implemented it will be seen as a confidence-boosting signal from the Narendra Modi led NDA 2.0 government.<\/p>\n\n\n\n

The opening up of Indian economy in the year 1991, unlocked greater and better opportunities to attract the foreign funds in the Indian stock market. RBI\u2019s decision to allow SEBI<\/a> registered FIIs\/NRIs\/PIOs\/OCBs to invest in Indian stock market the Indian stock market through the portfolio investment scheme was a game changer. Entities that can register as FIIs include asset management companies, pension funds, mutual funds<\/a>, banks, investment trusts, nominee companies, incorporated\/institutional portfolio.<\/p>\n\n\n\n

Benefits Of Increased FPI & FII Investment For Indian Stock Market<\/strong><\/h2>\n\n\n\n

In the past, foreign portfolio investment has played an important role in determining the overall balance of payments. Foreign portfolio investment enlarges the liquidity of domestic capital markets, and as well as develops market efficiency. As markets become more liquid, a wide variety of investments<\/a> can be financed. The greatest beneficiaries of this will be start-ups.<\/p>\n\n\n\n

Another advantage of foreign portfolio investment is that they bring discipline and knowledge into the Indian stock market. In broader market, investors can reap greater rewards by investing in emerging investment opportunities. As businesses compete for financing, they will face demands for better information as foreign portfolio investors generally ask for a higher level of information disclosure and accounting standards, and bring with them a rich experience.<\/p>\n\n\n\n

Higher inflow of foreign portfolio investment helps in boosting the Indian stock market. As the market\\’s liquidity and functionality progresses, equity prices will increasingly reflect the fundamental values of the firms, enhancing the more efficient allocation of capital flows.  Foreign portfolio investors also support the domestic capital markets by introducing more sophisticated technologies for managing portfolios.<\/p>\n\n\n\t\t

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Related investing topics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n How to Invest in Share Market? <\/h3>\n \t\t \t

Considering the volatility, investing in stock markets is both an art and science.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n 5 Best Places To Live After Retirement In India <\/h3>\n \t\t \t

While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n 90% People Lose Money in Stocks? <\/h3>\n \t\t \t

Isn't it shocking? But it is a fact. There are countless reasons why investors lose money in stock markets.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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\n Is Long Term Investing Always Safe? <\/h3>\n \t\t \t

Let\u2019s understand what long-term means before we explain why Long Term Investing may not always be safe.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n

Read more: \u00a0How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Foreign Portfolio Investors (FPI\u2019s) & Foreign Institutional Investors (FII\u2019s) have been one of the biggest drivers of Indian stock market. […]<\/p>\n","protected":false},"author":5,"featured_media":1589,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1588","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=1588"}],"version-history":[{"count":1,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1588\/revisions"}],"predecessor-version":[{"id":61904,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/1588\/revisions\/61904"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/1589"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=1588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=1588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=1588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}