India may be the top FPI destination once US Fed pauses rate hike: Analysts

Besides India, analysts expect Indonesia, Thailand, and China to attract foreign portfolio investment flows

Within three trading sessions in May, foreign portfolio investors (FPIs) have pumped in Rs 9,461 crore into Indian equities. This follows net inflows worth Rs 7,936 crore in March, and Rs 11,631 crore in April.

The trend, analysts said, could continue going ahead as the US Federal Reserve may soon halt its interest rate hike cycle, which will strengthen foreign fund inflows into emerging markets, including India.

"With Wednesday’s 25-basis point rate hike, the real interest rates in the US have turned positive.