India receives investment of 4,895 crore rupees due to changes in FDI rules

Foreign Portfolio Investors (FPIs) have ramped up purchases of Indian stocks this month, injecting 23,544 crore rupees in August so far. This inflow is attributed to improved quarterly profits, rupee stability, and more favorable market prospects, which has boosted overall market sentiment.

This influx followed FPI investments of 20,200 crore rupees in July. This marks a sharp turnaround after four consecutive months of intense selling and signals a renewed confidence in Indian equities.

Previously, FPIs had withdrawn funds in June (49,340 crore rupees), May (32,963 crore rupees), April (60,847 crore rupees), and March (a massive 1.17 trillion rupees). Before that period, according to CDSL data, they invested 22,615 crore rupees in February.

Despite the recent purchases, foreign investors remain net sellers in the Indian stock market for 2026, having withdrawn about 2.3 trillion rupees to date. This amount exceeds the outflow of 1.66 trillion rupees registered for the entire year 2025.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that factors prompting FPIs to return to the Indian market include the resurgence of profit growth reflected in first-quarter results, FPI exit from 'chip trading,' rupee stability, and impressive growth prospects for companies across the broader market.

He also added that FPIs are not acquiring attractively valued leading large-cap banking or IT stocks; instead, they are selectively buying mid-cap companies despite their elevated valuations.

Pabitro Mukherjee, Vice President of Research at Bajaj Broking, stated that in the coming week, investors will closely monitor crude oil price movements and the development of geopolitical tensions between the US and Iran to determine the market's future direction.

Foreign investor interest has also extended to the debt market. During the period under review, they invested 852 crore rupees in debt through the Fully Accessible Route (FAR), while withdrawing 995 crore rupees through the general route.

The Reserve Bank of India (RBI) plans to amend the rules for Fixed Deposits (FDs), introducing new provisions that will affect interest rates on FDs, as well as include several other additions. The updated term deposit rules will become effective from October 1, 2020.

The objective of these revised guidelines is to provide banks with greater flexibility in determining interest rates and to introduce new rules for bulk deposits. A bulk deposit is defined as an FD amounting to INR 30 million or more.

Banks are now required to update interest rate information daily by 10 AM. Starting from October 1, 2026, banks must publish deposit interest rates, including those for bulk deposits, on their websites.

Interest rates for bulk deposits must be updated on the bank's website every working day at 10:00 AM, with an additional buffer of 10 minutes, and this announcement must be made no later than 10:10 AM.

Banks have been instructed to provide a uniform interest rate for the deposit amount received on the same day. The RBI emphasized that there should be no discrimination regarding the interest accrued on identical deposit amounts received on the same day across any branch.

Regarding bulk deposits, banks will be given the freedom to set differentiated interest rates, taking into account differential outflow rates applicable to deposits or unsecured bulk deposits within the LCR framework.

Since these rules pertain to large deposit amounts (INR 30 million and above), the impact on small depositors is likely to be limited. Nevertheless, these directives will enhance transparency and uniformity in the banking sector.

The traditional formula for wealth creation for investors in India is gradually transforming. Although stocks, fixed deposits (FDs), gold, and real estate still form the basis of most portfolios, they are being replaced by new asset classes such as private credit, structured bonds, real assets, international investments, and cryptocurrencies.

Experts note that old investment options are not disappearing but rather becoming more diversified within investors' portfolios. One of the key factors driving this change is the changing profile of the investors themselves. Today, people are starting to invest at a younger age and have more sources of financial information. The increased use of digital financial products has also simplified access to new investment opportunities.

According to Minhal Thakral from CoinDCX, traditional assets will retain their role as the foundation of investment portfolios. Nevertheless, among investors under 35, there is heightened interest in global and high-growth asset classes, with cryptocurrencies being a prime example of this growing demand.

Minhal Thakral asserts that crypto investors are becoming more mature, and their focus is shifting towards established tokens like Bitcoin and Ethereum. She notes that until 2021, cryptocurrency was associated exclusively with meme coins for many Indian investors, but this view is changing. In her opinion, cryptocurrency is evolving similarly to how the stock market in India has gradually matured. There is a growing trend toward disciplined investment in crypto assets through small amounts, reminiscent of the rise of SIPs in mutual funds.

Experts believe that in the future, wealth creation will not depend on a single type of asset. Investors now have access to international assets and various alternative investments that were previously available mainly to institutional investors. Minhal Thakral emphasizes that portfolio balancing has become a much more critical task. Investment allocation should be based on an individual's risk tolerance, financial goals, and time horizon. Cryptocurrency should be viewed not as a speculative bet, but as an integral part of a larger financial plan.

Thakral insists that before investing money in any asset, one must understand its operating principle. She provides examples: Bitcoin is characterized by a limited supply and a scarcity-based structure, whereas Ethereum supports smart contracts and decentralized applications. The expert warns that one should not invest in an asset solely because it is trending; investing in an asset without understanding it, based only on market growth, can increase risk.

Interest in alternative investments is not limited to young investors. Chirag Mehta, Director of Investments at Quantum Asset Management Company Private Limited, reports that High Net Worth Individuals (HNIs) and family offices are also turning to private credit, structured bonds, and real assets. He points out that AIF obligations have multiplied over the last decade, exceeding 12 trillion rupees. A significant portion of this growth came from AIF Category II, which includes strategies similar to private credit and real estate. According to Mehta, this shift is driven by the need for portfolio diversification, increased investor awareness, and improved access to investment structures.

Chirag Mehta also explains that not all alternative investments require locking up funds for a long period. The company Arbor focuses on Non-Convertible Debentures (NCDs). He considers secured debt instruments an option for real estate investment that can fill the gap between FDs and equity funds in terms of risk and return. However, he cautions that risks exist even in such investments, and there are no guarantees of returns.

Real estate investment is no longer limited to direct ownership of properties. Chirag Mehta reported that Arbor is in the process of launching a regulated SEBI AIF Category II. The proposed fund will focus on opportunities in development and private equity in fast-growing markets. The firm targets an IRR in the medium to high range, but this is not guaranteed profit. The company's priorities are rigorous underwriting, active participation in the development lifecycle, and value creation.

Experts conclude that the growing popularity of new asset classes does not mean that traditional investment instruments have become obsolete.