Why is it in News?
- India’s capital markets are witnessing a structural shift from foreign portfolio investment to domestic savings.
- This shift is strengthening stability and reducing external financial vulnerability.
Important Points
- FPI ownership in equities fell to 16.9%.
- FPI ownership in NIFTY-50 dropped to 24.1%.
- Mutual funds are reaching record equity ownership levels through strong SIP inflow.
- Retail and mutual funds own about 19% of the equity market.
- IPO fundraising exceeded ₹1 lakh crore.
- Corporate investment announcements rose significantly.
- Domestic institutional buying supported markets during global pressure.
- Reduced foreign dependence gives RBI more policy flexibility.
- Concerns remain regarding valuation excesses and unequal participation.