FPIs invest nearly $7 billion in Indian equities in September
Foreign portfolio investors (FPIs) have pumped in almost $7 billion into Indian equities in September, marking the highest level of net buying since December 2022. This surge is a big jump from August's figure of $873 million. The data, provided by NSDL, shows that this is the most substantial monthly purchase since last December when FPIs were net buyers at $7.9 billion.
FPIs's net buying of Indian equities surpasses $12 billion
So far this year, FPIs have been net buyers of Indian equities, with total investments exceeding $12 billion. This trend is primarily attributed to the US Federal Reserve's dovish stance and its recent rate cut on September 18. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that these factors have played a significant role in attracting sustained flows to emerging markets like India.
FPIs show increased interest in Indian debt
FPIs have been diving into Indian debt, pouring in a whopping $3.75 billion just in September. This bumps up the total debt investments for 2024 to a solid $17.09 billion. Krishna Appala, a Senior Research Analyst at Capitalmind Research, pointed out that FPIs are increasingly attracted to Indian debt, especially after Indian bonds were included in JPMorgan's index.
Total FPI investments in India reach $30.66 billion
Total FPIs across categories like debt, equity, alternative investment funds (AIF), mutual funds (MF), and hybrid funds have hit around $30.66 billion this year until September. This surpasses last year's total of $28.70 billion. The rise in investments shows that foreign investors are increasingly confident in the Indian market.
