Foreign Investors Show Confidence in India’s Financial and Telecom Sectors
In the latter half of June 2024, foreign institutional investors (FIIs) have shown strong interest in India’s financial services and telecom sectors. According to NSDL data, FIIs invested Rs 8,162 crore in financial services and Rs 6,208 crore in telecom.
The Indian equity market saw a significant boost with total FII investments reaching Rs 29,628 crore from June 16-30. This influx of foreign capital highlights the growing confidence of international investors in India’s economic prospects and market potential.
Sector-wise Investments
The financial services sector attracted the highest investment, reflecting investor confidence in India’s robust banking system and fintech landscape. The telecom sector received the second-highest investment, driven by increasing mobile and internet penetration and advancements in 5G technology.
Other sectors also saw substantial investments:
| Sector | Investment (Rs crore) |
|---|---|
| Consumer Services | 3,097 |
| Capital Goods | 2,929 |
| Healthcare | 2,886 |
| Auto | 2,054 |
| IT | 1,578 |
| Construction Materials | 1,475 |
| Oil & Gas | 1,048 |
| Consumer Durables | 1,048 |
| Chemicals | 1,048 |
Meanwhile, FIIs were net sellers in power, metals, and FMCG stocks, selling Rs 2,439 crore, Rs 1,128 crore, and Rs 677 crore respectively.
Despite global economic uncertainties, India’s stable macroeconomic environment, strong growth outlook, and investor-friendly policies have made it an attractive destination for foreign investors.
