FPIs pump ₹27,856 crore in Indian equities, Sept debt inflow at ₹7,525 crore; What fuels the renewed interest? | Stock Market News

Foreign portfolio investors (FPIs) made a remarkable comeback to Indian markets in September, snapping their previous moderation, driven by domestic and global factors. FPIs 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 (FY25).

FPIs invested ₹27,856 crore worth of Indian equities, and the net investment stood at ₹53,007 crore as of September 13, taking into account debt, hybrid, debt-VRR, and equities, according to the National Securities Depository Ltd (NSDL) data. The total investment in debt markets moderated to ₹7,525 crore so far this month.

“A significant trend in the market for the week ended 13th September is that FIIs were buyers of equity in the cash market on all days of the week. This makes FIIs buyers for ₹27,862 crores for September through 13th,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

FPIs inflow outlook

Analysts say the selling trend is likely to continue since India is the most expensive market in the world now, and “it is rational for FPIs” to sell here and move the money to cheaper markets. “This picture doesn’t change even if the market turns more bullish on fears regarding US recession receding,” said Dr. V K Vijayakumar.