Rising Influence of FPIs and New Indian Traders in the Market

Foreign Portfolio Investors (FPIs) are increasingly participating in the Indian equity and derivatives market, alongside new Indian investors from smaller cities. SMC Global Securities is capitalizing on this trend, aiming to expand its FPI business while catering to the growing domestic market with mobile trading apps.

Foreign Portfolio Investors' (FPIs) involvement in India's equity and derivative markets is experiencing a substantial uptick, alongside an emerging wave of new Indian investors from tier-3 and tier-4 cities, according to industry analysts.

Ajay Garg, Director and CEO of SMC Global Securities Ltd., noted, "As FPIs seek stable returns, buoyed by India's predicted economic growth, we're seeing a significant contribution from new Indian traders, leading to a manifold increase in trading volume over the next five years."

With over 11,800 FPIs, including 3,500 from the US, already investing over USD 1.1 trillion, SMC aims to capture more FPI business while leveraging technology to reach traders beyond tier-4 cities via mobile apps.

(With inputs from agencies.)