Foreign portfolio investors (FPIs) withdrew Rs 37,631 crores from Indian equities during the last fiscal year, after selling a record amount the previous year. However, FPIs are expected to return in the current financial year as India has a high growth potential in 2023-24. Factors including US federal reserve policy, oil prices and geopolitical developments may affect FPI flows this year. Domestic institutional investors have absorbed the massive selling by FPIs, while oversold sectors such as FMCG, capital goods, and healthcare hold potential for contrarian growth, according to Geojit’s Chief Investment Strategist.

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