Foreign portfolio investors rekindle love affair with Indian markets

A year after applying brakes on their investments in India, foreign portfolio investors (FPIs) are once again looking at the country aggressively. So far in 2019, India has been one of the highest recipients of foreign flows among Asian and Emerging Market (EM) economies. Last year, flows into India were tepid as most FPIs had cut their ‘overweight’ stance on India to multi-year lows. However, hopes of improvement in macro conditions and earnings growth have prompted foreign funds to mount aggressive bets on the country.

So far this year, India has garnered $7 billion of FPI flows, much higher than peers