In 2024, money coming from foreign investors into Indian stocks wasn’t very stable. Foreign Portfolio Investors (FPIs) sold a lot of shares, especially in two sectors: financials and oil & gas. They sold more than ₹1 lakh crore (which is a lot of money!). In some months, they sold more stocks than they bought. In total, they purchased shares worth ₹6,770 crore by December 20, 2024.
Some months, like January, April, May, October, and November, saw big sell-offs. October was the worst month, with investors selling shares worth ₹94,017 crore. On the other hand, September was great for inflows with ₹57,724 crore coming in.
Breaking it down by sector, FPIs really targeted the financial sector, selling off ₹53,942 crore worth of shares. The highest selling happened in January and October. They did buy some shares back in September, totaling ₹27,200 crore.
The oil and gas sector didn’t fare well either, with ₹50,851 crore worth of shares sold, mostly in October and November. Other sectors like FMCG, automobile, construction, media, metals, and power saw some outflows too, but not as much.
On the bright side, certain sectors like capital goods, healthcare, and telecommunications saw inflows.
Looking ahead to 2025, expert V K Vijayakumar believes that returns will be moderate. He thinks India’s GDP will improve in the last parts of the year, thanks to more government spending, which will get investors back on board. However, the economy faced challenges in Q2 with only 5.4% growth, one of the lowest rates in a while.
Sunil Damania, another expert, sees slow economic growth as a big risk for companies’ earnings. He thinks 2025 will be a tougher market and suggests focusing on specific sectors rather than broad trends.
Finally, with Donald Trump as the new U.S. President, there are concerns about tariffs and their impact on inflation. Experts recommend avoiding risky investments tied to these geopolitical changes, instead, focusing on businesses that are less affected by global issues
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