What is Core & Satellite strategy?

Foreign Portfolio Investment (FPI) inflows in India’s equities turned positive in financial year 2024 (FY24). FPIs poured in Rs 2.08 lakh crore in the current fiscal. Analysts attribute the turnaround to optimism surrounding the country’s robust economic fundamentals amidst a challenging global environment.  Naveen KR, smallcase Manager and Senior Director at Windmill Capital, said, that economies like the UK and Japan have fallen into recession, Russia and Ukraine are still at war, the USA’s inflation is running hot and the debate of soft versus hard landing still persists, while China has become the global anti-hero. Therefore, he concluded that India has stolen the spotlight and is delivering numbers with strong GDP growth even amidst a tough business environment.

While, Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said, “Investors increasingly favoured Indian equities, drawn by the market’s demonstrated resilience during uncertain periods. Compared to other similar markets, India’s economy stood out as more robust and stable amidst global economic turbulence, further attracting foreign investment.”

As a result of robust FPIs buying in FY24,  Nifty Realty has given returns of 136 per cent in the current fiscal. Nifty PSU Bank gave 90 per cent return. Nifty Auto gave 76 per cent return. The 50 constituent Nifty 50 is up 30 per cent, the benchmark index finished the financial year at 22,326 points.

Going forward,  most of the analysts have given positive outlook on India’s equity market for FY25 as well. Looking forward to 2025, Bharat Dhawan, Managing Partner at Mazars in India, said that the outlook is cautiously optimistic and anticipates sustained FPI inflows supported by progressive policy reforms, economic stability, and attractive investment avenues.

The outlook for FY25 from an FPI perspective, continues to remain strong,  Naveen KR, smallcase Manager and Senior Director at Windmill Capital, said.

Before this,  FPIs were net sellers in FY23 and FY22. While, they were net buyers of domestic equities in FY21. Infact, FPIs registered all time record inflows of Rs 2.74 lakh crore in FY21.