India-focused offshore fund, ETFs record $803 mn net inflow in Q4

This, after 17 quarters of net outflows on the trot; experts attribute change in FPI stance to better valuations in Indian market, strong fundamentals

After 17 quarters of net outflows in a row, India-focused offshore funds and exchange traded funds (ETFs) have received net inflows for three consecutive quarters now, signalling a shift in stance of foreign investors with respect to the Indian market.

In the past three quarters (Between October 2022 and March 2023) offshore funds and ETFs have received a net of $1.8 billion, shows the latest Morningstar Offshore Fund Spy report.

Experts attribute the change in stance of foreign portfolio investors (FPIs) to improvement in valuations of the Indian market and strong fundamentals.

“There is a distinct change in the FPI