New Delhi: Foreign portfolio investors (FPIs) purchased equities in the Indian stock market for Rs 16,800 crore this week, increasing the total to Rs 27,856 crore for the month (up to September 13).
According to NSDL data, FPIs purchased equities in the cash market on every day of the week.
According to industry observers, it is important that FIIs were buyers through the exchanges this week, as opposed to the primary market in previous weeks.
There are two reasons why FPIs have shifted from selling to purchasing.
The Fed is expected to begin decreasing interest rates this month, lowering US yields and encouraging money flows from the US to emerging markets.
Furthermore, the Indian market is incredibly durable and has significant momentum, so losing out on it would be a bad strategy for foreign portfolio investors.
FPIs have invested a total of Rs 70,737 crore as of 2024.
According to Manoj Purohit, Partner and Leader, FS Tax, Tax and Regulatory Services, BDO India, the month of September saw a full swing from the FPI fraternity, which made a significant infusion into the Indian equity market, resulting in the second-highest single-day buy of 2024.
“This shift in the investment wave is largely attributable to the Indian equity market reaching new all-time highs. The robust inflows are due to underlying factors such as global confidence in India’s economic outlook and the government’s commitment to drive a long-term growth story,” Purohit mentioned.
FPIs are cashing in at the appropriate time to tap the Indian market, which is benefiting from favourable market sentiment and political stability. This incursion not only reflects the growing appeal of Indian shares but also demonstrates foreign participants’ historical faith in India’s financial markets, including during geopolitical crises and other macro factors.
According to experts, the market regulator’s timely actions in easing business norms, releasing consultation papers on industry issues, and being agile enough to accept and instill global best practices have helped India become a competitive and one of the most preferred destinations for embedding funds to earn higher returns than other developing economies.
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–IANS
