FPI influence is waning!

FPI investors was considered smart money for so long. Their movement would decide the market's trend. But this no longer seems to be the case. The clout of FPIs has diminished considerably, as evidenced by recent reports indicating their lowest stake in Indian equities in a decade, standing at 16.2 percent of the overall market capitalization. Despite injecting a substantial $25 billion (nearly Rs 2 lakh crore) into the Indian equity market during the fiscal year 2023-24, averaging around $2 billion monthly, their influence has waned. But while the impact of FPI exits on the Indian market has diminished, their buying continues to wield significant influence.