The quantum of investments of Foreign Portfolio Investors (FPI) in domestic equities has gone down. By December 2022, the decline was 11 percent and was limited to $ 584 billion as against $ 654 billion in December 2021, according to the Morning Star report. This phenomenon is attributed to losses in the domestic stock market leading to foreign investment withdrawal from equities. But on quarterly basis, the FPI investments grew by 3 percent. By September 2022, the growth was put at $ 566 billion. By December 2o22, they improved to $ 584 billion. In 2022, because of several unfavourable conditions, foreign investments migrated on a large scale from local equity markets. According to a conservative estimate, the quantum of investments withdrawn was $ 16.5 billion (Rs 1.21-lakh crore).
