FPI inflows : According to a survey released on Friday, foreign investors’ inflows into Indian domestic stocks are rebounding, and the markets’ long-term prognosis is positive.

According to the paper from Emkay Global Financial Services, the rupee’s depreciation may deter foreign portfolio investors (FPIs), with a return anticipated only once the currency stabilizes for a prolonged period of time (1-2 months).

But we think this is just a short-term blip. We believe that the long-term forecast for domestic flows is strong,” it said.

For long-term savers, fixed income has become an unappealing alternative due to low nominal interest rates and the removal of tax advantages from debt mutual funds. The report said, “We expect continued and sustained domestic flows into equities unless there is a deep and extended market correction, which is unlikely, in our opinion.”

In the last 12 months, the proportion of household savings that is made up of stocks has stabilized after a nine-year spike from 17% to 30% (March 2016 to September 2024).

The BSE-500 corrected 6.6% between September 2024 and September 2025, indicating that market activity was a major factor in the consolidation, even if flows were strong during this time.

We consider this to be a passing trend and anticipate that the proportion will increase to 45% over the next ten years, with month-to-month (M2M) impact being a key factor. The research said that this shift in trend is crucial for the stability of the Indian market since DIIs already hold more shares than FPIs and have served as a hedge against FPI selling and the ensuing market volatility.

“FPIs continue to be large-cap heavy with a high overweight (OW) on Financials, according to our analysis of FPI and DII aggregate portfolios,” the report said.

Due in major part to the monthly increases, the percentage of gold in family savings has increased by 855 basis points over the last 12 months to 45.6%.

We don’t observe a significant impact since the data doesn’t point to a significant increase in consumption as a consequence of the wealth effect. Additionally, we don’t see any effect on additional equity flows. Accordingly, the research concluded that there is no historical relationship between gold prices and equity movements.