Foreign Portfolio Investors Boost Indian Stocks with Rs 16,881 Crore Infusion in September

Foreign Portfolio Investors (FPIs) demonstrated strong confidence in Indian equities, investing Rs 16,881.03 crore in the second week of September. Data from NSDL shows robust foreign interest supporting market trends despite volatility. Experts predict focus on US federal rate cuts and corporate earnings will influence future market direction.

Foreign Portfolio Investors (FPIs) continued their bullish stance on Indian stocks, injecting Rs 16,881.03 crore in the second week of September, as per National Securities Depository Limited (NSDL) data. This investment phase, covering September 9 to September 13, 2024, saw the highest inflow on September 11, with Rs 2,962.44 crore, underscoring strong confidence in India's equity markets.

This week's investments prolong the positive trend from the first week of September, which saw net investments of Rs 10,980 crore. With these latest inflows, foreign investment in Indian equities for September amounts to Rs 27,861 crore, demonstrating robust interest from global investors.

Experts highlight the upcoming US federal meeting on rate cuts and corporate earnings as key focus areas for both domestic and foreign investors. 'Indian markets overcame last week's negative sentiments due to SEBI's FII disclosure norms and US recession fears. Despite volatility, DIIs and FIIs flows remained strong, driven by a strong monsoon and expected festive season demand,' said Vinod Nair, Head of Research, Geojit Financial Services.

Consistent FPI inflows showcase the rising attractiveness of Indian markets, propelled by strong economic fundamentals, improved corporate earnings, and positive global sentiment towards emerging markets. In contrast, August saw a significant decline in net foreign investment in Indian equities to Rs 7,322 crore, the lowest in three months. This is particularly notable compared to July's Rs 32,359 crore investment, according to NSDL data.

(With inputs from agencies.)