FPIs inflow: The confidence of foreign investors i.e. FPI in the Indian stock market has remained constant for the last few weeks.So far in September, he has purchased shares worth Rs 57,359 crore. This is the highest investment he has made in a month this year. In the last month last year, FPI investment in Indian shares was more than Rs 66 thousand crore. September 2024There is still one trading session left. Apart from shares, foreign investors infused Rs 8,543 crore in the debt market i.e. bond market through voluntary retention route (VRR) and Rs 22,023 crore through fully accessible route (FRR).
Foreign investors bought record shares so far in September
After the US Central Bank Federal Reserve cut the key interest rates by 0.50 percent, FPI investment in the Indian market is continuously increasing. According to the data, foreign investors have invested Rs 57,359 crore in the Indian stock markets till September 27 this month. This is the highest FPI investment in Indian shares after December 2023. In December last year, foreign investors had invested Rs 66,135 crore. Since June this year, FPIs have remained net buyers continuously. In April-May he had withdrawn Rs 34,252 crore from shares. Overall, except January, April and May this year, FPIs have been net buyers in other months. This year i.e. in 2024, FPI investment in Indian shares has crossed the figure of Rs 1 lakh crore.
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“FPI inflows will remain strong going forward,” said Robin Arya, small-case manager and founder and chief executive officer (CEO) of research analyst firm Goalify. Due to reduction in interest rates globally and strong fundamentals of India, FPIs are betting on the Indian market. Along with this, he said that the decisions of the Reserve Bank of India related to inflation rate management and liquidity will be important to maintain this pace.
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Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said that several reasons have led to the surge in FPI inflows into Indian stock markets. One of the main reasons for this is the US Central Bank starting the cycle of interest rate cuts.
