FPIs remain net buyers at Rs 21,875 cr so far in September

According to data from depositories, FPIs pumped in Rs 13,536 crore into equities and Rs 8,339 crore into the debt segment during September 1-23

"Rally in the Indian equity markets, positive long-term outlook, the expectation of economic rebound and improvement in corporate earnings has led foreign investors to re-invest in Indian equities," said Himanshu Srivastava, associate director (research), Morningstar India.

Besides, he added that the turmoil in China has also benefitted India, making it an attractive investment destination among foreign investors from a long-term perspective.

However, higher valuations and US Fed signalling reversing of pandemic stimulus programmes in November did limit the flow of assets to some extent, he noted.

"The renewed FPI interest in India is partly because of Nifty's impressive outperformance vis-a-vis MSCI World Index and MSCI EM Index this year," said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

With respect to other emerging markets, Shrikant Chouhan, executive vice-president (equity technical research) at Kotak Securities, said Taiwan reported a total FPI inflow of $1,482 million.

FPI Inflows in South Korea, Thailand, Indonesia and the Philippines during the period under review stood at $1,223 million, $358 million, $268 million and $38 million, respectively, he added.