US and Japan Investors Increase Exposure to Indian Stock Market (D-Street)

Institutional investors from the United States and Japan are pouring more money into the Indian stock market, reaching a record high in their combined ownership. This trend comes after the recent Indian general election victory of Prime Minister Modi.

According to a report, US-based funds now hold a commanding 42.2% share of total foreign portfolio investor (FPI) holdings in India, reaching a record ₹30.2 lakh crore ($361 billion) in assets under management (AUM). Japanese investors have also shown increased interest, with their AUM rising 70% to ₹2.1 lakh crore, translating to a 2.9% share of the total FPI holdings.

This surge in investment from these two major economies reflects growing confidence in the Indian market. Analysts suggest that factors like interest rate differentials between countries and positive outlooks on the Indian economy post-election are driving this investment activity.

Key takeaways:

US and Japanese investors are increasing their holdings in Indian equities.

This is a record high for combined ownership by these countries.

The rise in investment is attributed to factors like election results and economic outlook.

Further developments:

It will be interesting to see if this trend continues and how it impacts the Indian stock market.

Investors will be watching key economic indicators and company earnings reports for further signals on market performance.