Foreign portfolio investors (FPIs) turned aggressive buyers in September, boosted by the latest supersized 50 basis points (bps) interest rate cut by the US Federal Reserve.
FPIs made a remarkable comeback to Indian markets this month, snapping their previous moderation, driven by domestic and global factors. They were consistent buyers in June and July after election-related jitters faded and stability returned to Indian markets.
However, FPIs halted their buying streak with the onset of the new fiscal year 2024-25 , FPIs pump ₹57,359 crore in Indian equities; Sept logs highest inflows YTD on US Fed pivot
According to NSDL data, FPIs invested ₹33,691 crore in Indian shares, with a net investment of ₹63,000 crore including debt, hybrid, debt-VRR, and equities as of September 20.
This month, the overall investment in debt markets is ₹7,361 crore. In terms of equities, September is expected to have the biggest FPI inflows year-to-date (YTD), with overall investment already at a nine-month high. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.The robust FII buying seen this month also extended into the week ending September 27th.
Variations in FII activity between exchanges and the main market continue, with occasional cash market selling and steady primary market investing. FIIs had invested ₹57359 crores in September, with exchanges alone accounting for ₹46480 crores.