Chennai, Jan 12 (IANS): After a dismal start, foreign portfolio investments (FPI) flow into India picked up pace, cumulatively totaling $28.7 billion in 2023, said a report by Bank of Baroda.

The report also said the trend will continue and be positive for the Indian rupee which will likely to appreciate.

The report said that FPI into India closed at 28.7 billion last calendar year.

“While equity segment continued to outperform, encouraging trend was also visible in the debt segment, particularly in the last few months of the year,” the report said.

It said that the improved corporate profitability, stable domestic macros, range-bound inflation and a stable political environment favour India as a preferred investment destination.

“India’s inclusion in JP Morgan’s bond index in June’24 as well as hopes that India might subsequently be included in other bond indices has been a key driver of FPI inflows in the debt segment,” the report said.

It said that the trend is likely to persist and gather more pace in the first two quarters of 2024.

“This will be positive for the Indian rupee, which is likely to trade with an appreciating bias in 2024,” the report said.