FPIs Inject Nearly $7 Billion into Indian Equities in September: A Record Month - Read Now 

September has proven to be a remarkable month for foreign portfolio investors (FPIs) in India, with investments reaching nearly $7 billion. This figure marks the highest net buying since December 2023, according to data from the National Securities Depository Limited (NSDL). Specifically, FPIs recorded net buying of approximately $6.85 billion in September, a substantial increase from just $873 million in the previous month.

The trend of positive investment comes after a period of cautious investing earlier in the year. So far in 2024, FPIs have been net buyers of Indian equities, accumulating just over $12 billion. Analysts attribute this surge in investment largely to the dovish stance taken by the US Federal Reserve, which announced a rate cut on September 18. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted that this rate cut can be seen as a pivotal moment for interest rates, encouraging sustained investment flows into emerging markets like India.

While India has attracted significant foreign investments, other markets are also catching the eye of investors. Notably, Hong Kong saw impressive gains of 14% in September, driven by monetary and fiscal stimulus aimed at revitalizing the Chinese economy. This has raised concerns that some funds may shift towards Hong Kong if its market continues to outperform.

In addition to equities, FPIs have shown strong interest in Indian debt markets, with total investments in September reaching $3.75 billion. This brings the total debt investment for 2024 to $17.09 billion. Overall, total investments across all categories—including equity, debt, mutual funds, and hybrid funds—have hit approximately $30.66 billion this year, surpassing last year's total of $28.70 billion.

As the landscape for foreign investments continues to evolve, experts remain optimistic about India’s market outlook. With attractive large-cap valuations and increased FPI interest, the stage is set for further growth in the coming months.

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