The Indian stock market is becoming more self-reliant with increased investments from mutual funds and domestic investors
Has the Indian stock market become more self-reliant and less dependent on the whims and vagaries of foreign fund managers? There are strong indications that even if we are not completely out of the disproportionate influence of foreign portfolio investors (FPIs), we are almost there.
Consider this: Till Dec 23 this year, FPIs had net invested 16,667 crore which includes stocks and IPOs. In comparison, mutual funds had net investments in stocks of Rs 4.2 lakh crore. And if we add the funds invested by other domestic funds like insurance companies, banks, pension funds and portfolio management services, the total jumped to nearly 5.8 lakh crore.