Record FPI Investment Surges in Indian Stock Market with Rs 23,659.55 Crore Inflow

Foreign Portfolio Investors (FPIs) significantly boosted their investments in the Indian stock market this week, achieving a record net inflow of Rs 23,659.55 crore. The highest single-day investment occurred on Monday, totaling Rs 15,181 crore. This strong FPI activity led to the highest monthly investment so far this year.

Foreign Portfolio Investor (FPI) investment in the Indian stock market surged to unprecedented levels this week, with net investments amounting to Rs 23,659.55 crore, as per data from the National Securities Depository Limited (NSDL). The most substantial inflow was recorded on Monday, as FPIs injected Rs 15,181 crore into Indian equities. This robust investment trend continued throughout the week, culminating in Friday's net investment of Rs 8,537 crore, pushing the total weekly investment beyond the Rs 23,000 crore threshold.

This substantial inflow has brought the total FPI investment for September to Rs 57,359 crore, the highest so far in 2024. "Foreign Institutional Investors (FIIs) have invested Rs 57,359 crore in September, with exchange-based investments alone reaching Rs 46,480 crore. Total investments by FIIs in 2024 now stand at Rs 100,245 crore, contributing to this year's INR stability," stated V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The surge follows the US Fed's decision to lower interest rates, increasing liquidity flows to Indian markets. The sustained investments by foreign investors underscores growing confidence in India's stock market, driven by strong economic growth and favorable conditions. Additionally, domestic institutional investors maintained their robust investment momentum, injecting Rs 15,961.71 crore into Indian stocks, propelling the indices to new highs this week.

This record-breaking investment is poised to further bolster Indian equities, potentially leading to continued market growth in the upcoming months. Notably, net foreign investment had dipped in August to Rs 7,322 crore, the lowest monthly inflow in three months, starkly contrasting with July's Rs 32,359 crore investement, according to NSDL data. Throughout August, foreign investors mostly acted as net sellers in the Indian equity market.

(With inputs from agencies.)