North India Statesman
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Mumbai: There is a cautious increase in foreign capital flows in emerging markets. After the US presidential election, after the exodus of foreign funds from emerging markets, they have been seen re -putting money in emerging markets including India. It is believed that in view of tariff war and economic uncertainty, foreign funds are diverting their attention to the emerging markets.
A research report states that major emerging markets including India, Brazil, Hong Kong and Taiwan have seen significant improvements in foreign capital flows in the last three weeks.
Foreign portfolio investors (FPIs) made a huge purchase of $ 4.5 billion in the second fortnight of April after becoming a pure buyer in Indian stock markets in March. Which has recorded the longest period of procurement in the last nine months.
Between factors such as global volatility, US dollar weakening and fall in crude oil prices, this huge investment flow has been recorded by foreign investors.
The previous such major purchase was recorded in July 2024, which was $ 5.1 billion in Indian stocks. The rupee rose 76 paise to 84.49 against the US dollar. Which is the highest single-day growth since November 2022. In April, FPI’s investment flow in shares was $ 1.26 billion and 23.4 billion in March 2025.
Which recorded a net sales of $ 5.35 million in February 2025, net sales of $ 8.42 billion in January 2025 and a net purchase of $ 1.32 billion in December 2024.
The report said that about $ 960 million out of $ 7.70 billion that went out of India after the US elections has returned in the last three weeks. Which is about 12 percent of the total withdrawal.
It was also reported that about 10 percent foreign investment has returned to Taiwan.
The new interest of foreign investors in emerging markets is not only due to American funds turning to these markets, but also due to an increase in global liquidity in the financial system. These funds have come under constant pressure as American investors are withdrawing money from American funds.
Foreign funds are looking towards emerging markets, even though there is a threat to America’s recession from tariff war.
