Agencies
New York
Foreign Portfolio Investor (FPI) investment in the Indian stock market hit a record high this week, with net investments totaling $2.84 billion, according to data from the National Securities Depository Limited (NSDL).
As per the data, the highest inflow was recorded on Monday, when FPIs pumped $1.82 billion into Indian equities. The strong investment continued throughout the week, with Friday’s net investment reaching $1.02 billion, pushing the total weekly net investment past the $2.84 billion mark.
This significant inflow brings the total FPI investment for September to $6.88 billion, marking the highest FPI investment in Indian equities so far this year.
"Foreign Institutional Investors (FIIs) have invested $6.88 billion so far in September, with investments through the exchanges alone touching $5.58 billion. Total investment by FIIs in 2024 now stands at $12.03 billion.
This has contributed to the stability of the Indian Rupee this year,” said Geojit Financial Services Chief Investment Strategist V K Vijayakumar.
Following the US Federal Reserve’s decision to lower interest rates, liquidity inflows to Indian markets have increased. The consistent investment by foreign investors highlights growing confidence in India’s stock markets, as many seek to capitalize on strong economic growth and favorable market conditions.
In addition to foreign investments, domestic institutional investors also remained strong this week, with a total of $1.92 billion pumped into Indian stocks, further supporting indices as they hit new highs.
This record-breaking investment is expected to provide further momentum to Indian equities, potentially leading to sustained market growth in the coming months.
Earlier, net foreign investment in August in the Indian equity market had declined to $0.88 billion, marking the lowest monthly investment in the past three months. This drop was stark compared to July, where FPIs had invested $3.88 billion, as per data from the NSDL.
In August, foreign investors were largely net sellers in the Indian equity market, but the trend has dramatically reversed, demonstrating renewed foreign confidence in Indian assets.