FPIs Infuse Rs 57,359 Cr Into Equities During Sep
Investments by foreign funds at 9-mth highest; With this, foreign investors’ investments in equities surpasses Rs1 L-cr mark
FPIs Infuse Rs 57,359 Cr Into Equities During Sep
New Delhi: Foreign investors have poured Rs 57,359 crore into Indian equities in September, making it the highest inflow in nine months, mainly driven by a rate cut by the US Federal Reserve. With this infusion, foreign portfolio investors’ (FPIs) investment in equities has surpassed the Rs 1 lakh crore mark in 2024, data with the depositories showed. Going ahead, FPI inflows are likely to remain robust, driven by global interest rate easing and India’s strong fundamentals. However, the RBI’s decisions, particularly regarding inflation management and liquidity, will be key in sustaining this momentum, Robin Arya, smallcase Manager and founder & CEO of research analyst firm GoalFi, said.
According to the data, FPIs made a net investment of Rs 57,359 crore in equities until September 27, with one trading session still left this month. This was the highest net inflow since December 2023, when FPIs had invested Rs 66,135 crore in equities. Since June, FPIs have consistently bought equities after withdrawing Rs 34,252 crore in April-May. Overall, FPIs have been net buyers in 2024, except for January, April, and May. Several factors have contributed to the recent surge in FPI inflow into Indian equity markets, such as the start of the interest rate cut cycle initiated by the US Fed, increased weightage of India in global indices, better growth prospects, and a series of large IPOs, Himanshu Srivastava, Associate Director- Manager Research, Morningstar Investment Research India, said.
The 50-basis points rate cut by the US Fed on September 18 increased the liquidity in the Indian markets since the Indian rupee was aided by currency fluctuations. This interest rate differential is expected to attract more FPI inflows into India, Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India, said. “With quite a few mainboard IPOs with healthy valuations listing on the stock market, foreign money has been flowing in for the new opportunities,” Bharat Gala, COO of Equity broking- Ventura Securities, said.
