In spite of a decline in the GDP growth rate, Foreign Portfolio Investors (FPIs) seem to have flocked to the Indian capital market in a big way in 2019 with a net inflow of over 1.3 lakh crore rupees, including 97,250 crore rupees in equities, the highest in last six years.
As the year draws to a close, the debt market has seen a net inflow of nearly 27,000 crore rupees by FPIs, while a further amount of 9,000 crore rupees found its way to the hybrid instruments, shows the capital market data compiled by depositories.
Experts believe the positive trend may continue in 2020 as well, but downside risks might arise in the form of the US-China trade war and any further deterioration in the domestic credit market conditions.
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