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.
Click to View MoreForeign Portfolio Investors (FPIs) are key players in India’s capital markets, providing liquidity and linking the country to global finance. Recent data shows a massive FPI sell-off of ₹1.5 lakh crore in 2025, driven by tepid corporate earnings, high valuations, and global economic uncertainties. Such outflows impact market stability, exchange rates, and investment sentiment, highlighting the need for stronger corporate performance, policy reforms, and investor-friendly measures to restore confidence and attract sustainable foreign investment.
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