Are Indian markets still at the mercy of foreign investors?

A rundown

Foreign capital outflows have often sparked market downturns in India. But this dominance is diminishing, thanks to the growing counterweight of domestic inflows.

Who is leading the charge?

Domestic equity inflows are on an upswing with steadfast, long-term capital infusion by domestic investors, notably giants like the NPS and EPFO (provident fund body).

How are they doing it?

While the NPS has been investing in the top 200 companies, EPFO has made consistent investments in equity via Nifty and Sensex ETFs since 2015-16.

Why is this important?

Institutional investors like the NPS and EPFO invest for the long haul, reducing the market's reliance on foreign money.

Retail SIPs lend strength

Moreover, monthly SIP inflows are nearing the Rs 20,000 crore mark – opening another front for consistent retail inflows.

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