Amid the strength of the Indian market and the expectation of interest rate cuts in the US, foreign investors i.e. FPIs bought shares worth Rs 27,856 crore in the first fortnight of September. Apart from shares, in the first two weeks of September, foreign investors have invested Rs 7,525 crore in the debt market i.e. bond market and Rs 14,805 crore in government debt securities designated under the Full Access Route (FAR).
According to the data of the depository, foreign investors have invested Rs 27,856 crore in the Indian stock market till September 13 this month. With this, their investment in shares has reached Rs 70,737 crore so far this year. Foreign investors have been continuously buying in the Indian market since June this year.Earlier in April-May, he had withdrawn Rs 34,252 crore from shares.
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Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said that now everyone’s attention is on the meeting of the US central bank Federal Reserve. The results of the meeting will determine the trend of FPI investment in Indian stocks.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, has given two main reasons for the strong buying by FPIs. First, there is now a consensus that the US Federal Reserve will start a cycle of cutting interest rates this month. This will reduce bond yields in America.
