In 2024, FPIs reduced investments in Indian equities due to high valuations and geopolitical uncertainties, but showed increased interest in Indian debt markets. Factors like weak corporate earnings, geopolitical tensions, and high inflation also impacted investor confidence. Recovery in FPI inflows is anticipated in 2025, driven by corporate earnings growth and lower interest rates. In 2024, FPIs reduced investments in Indian equities due to high valuations and geopolitical uncertainties, but showed increased interest in Indian debt markets. Factors like weak corporate earnings, geopolitical tensions, and high inflation also impacted investor confidence. Recovery in FPI inflows is anticipated in 2025, driven by corporate earnings growth and lower interest rates. Economic Times
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