FPI Investment : The stock market is booming once again. Investors are again expecting huge returns. Foreign investors have also started returning to the Indian stock market. In the first two weeks of December, foreign institutional investors have invested Rs 22,766 crore. This has again raised the hope of a huge rise in the stock market. The investors who were expecting a cut in interest rates by the US Central Bank US Fed Reserve and then running away from the Indian stock market are returning as auspicious signs.

Foreign investors sold the most in October 

In the month of September, foreign portfolio investment was the highest in nine months at Rs 57,724 crore. But in the month of October, foreign investors sold off the highest amount in history, worth Rs 94,017 crore. In the month of November too, foreign investors sold off Rs 21,612 crore. Due to this, the Indian stock market crashed. 

Foreign investment is turbulent

Even now, foreign investors have not become stable towards the Indian stock market, rather they are in a state of confusion. Because foreign investment in the stock market also depends on factors like US rule, geopolitical scenario and reduction in interest rates by Federal Banks etc. Further, it will depend on the balance sheet of Indian companies in the third quarter and the progress of the country on the economic development front. Because on this basis, the stock market will be able to capitalize on the sentiments of investors and an environment will be created for foreign investment.

India's importance will remain as a growth market

Stock market experts believe that even though there is ups and downs on the foreign investment front due to the current circumstances, India's importance as a growth market remains intact across the world. The Reserve Bank has also tried to increase the flow of capital in the market by reducing the amount of cash reserve in India. The inflation rate has also increased from 6.21 percent in October to 5.48 percent in November. This has also boosted the morale of investors.