Equity Markets

SAVING SHIFTS RESHAPES INDIA'S MARKET

India’s capital markets are undergoing a major shift as domestic household savings increasingly replace foreign institutional money. This transition strengthens market stability and enhances policy autonomy but also exposes new retail investors to higher risks, uneven participation, and potential overvaluation. With rising SIP inflows, booming IPOs, and declining FPI dependence, markets appear strong on the surface, yet structural issues—such as unequal access, performance gaps in active funds, governance concerns, and growing wealth inequality—require urgent attention. Ensuring investor protection, financial literacy, and transparent regulation is critical for converting this savings shift into inclusive and sustainable financial growth.