Mumbai, June 23 -- India's capital markets story continues to be driven by strong inflows through Systematic Investment Plans (SIPs), despite subdued equity market returns and sustained foreign investor selling, according to a report by JP Morgan.

Initiating coverage on India's capital markets sector, JP Morgan said that "India's capital-markets story remains fundamentally driven by SIP-led financialization, despite weak equity returns."

The report highlighted that the Nifty 50 has delivered a two-year compound annual growth rate (CAGR) of just 0.8 per cent in rupee terms and minus 3.2 per cent in US dollar terms. During FY25 and FY26, foreign portfolio investors (FPIs) sold Indian equities worth about USD 36 billion (Rs 3.3 trillion)....