Nifty 50 recorded a substantial gain of 7.94%, marking its best December performance in the last two decades. The previous best December performance was in 2003, when the index achieved a gain of 16.38%.
After outflows worth ₹1.21 lakh crore in 2022, FPIs returned as buyers in 2023, buying Indian equities worth ₹1.65 lakh crore. During the year, FPIs were net sellers in just 4 months and buyers in the remaining 8.
Gross purchases by foreign portfolio investors (FPI) of Indian equities rose to a record in December as demand for risky assets surged. Overseas funds expect a goldilocks scenario in 2024: Soft-landing in the US, stable currencies, and rapid growth in India, anchored in political stability and policy continuity.