UP attracts investment worth more than Rs19,000 Crore at WEF 2025, Davos
During the World Economic Forum (WEF) 2025 meeting in Davos, Uttar Pradesh attracted investments exceeding Rs 19,000 crore.
The exodus of FPIs from Indian equity markets continues unabated. In
January so far, they withdrew Rs 64,156 crore ($ 7.44 billion).
The development came amid depreciation of the rupee, rise in the US
bond yields and expectation of a tepid earning season.
Advertisement
According to the data with the depositories, FPIs made an investment
of Rs 15,446 crore in the entire December. The shift in sentiment
comes amid global and domestic headwinds.
Advertisement
Experts believe that the higher valuation of Indian equities, despite
recent corrections, expectation of a rather tepid earning season and
macroeconomic headwinds are making investors wary.
According to the data, Foreign Portfolio Investors (FPIs) offloaded
shares worth Rs 64,156 crore from Indian equities so far this month
(till January 24). FPIs have been sellers on all days this month
except January 2.
The data said that the financial segment has been bearing the brunt of
FPI selling as the bulk of their assets under management is in this
sector.
On the other hand, IT witnessed some buying in the wake of improved
prospects for the sector and the positive management commentary.
The overall trend indicates a cautious approach by foreign investors,
who scaled back investments in Indian equities significantly in 2024,
with net inflows of just Rs 427 crore.
Notably, since US bond yields are attractive, FPIs have been sellers
in the debt market, too. They withdrew Rs 4,399 crore from debt
general limit and Rs 5,124 crore debt voluntary retention route.
In 2023, extraordinary Rs 1.71 trillion net inflows were made by the
FPIs, driven by optimism over India’s strong economic fundamentals.
2022 saw a net outflow of Rs 1.21 trillion amid aggressive rate hikes
by global central banks.
Advertisement
