Foreign Investors Pour Rs 16,881 Crore into Indian Stocks in September
Foreign Portfolio Investors (FPIs) continued their bullish stance on Indian stocks, infusing Rs 16,881.03 crore in the second week of September, according to data from the National Securities Depository Limited (NSDL). The data covers investments made between September 9 and September 13, 2024.
The highest inflow was recorded on Wednesday, September 11, when FPIs invested a substantial Rs 2,962.44 crore into Indian stocks, signalling strong confidence in the country’s equity markets. This week’s investment marked a continuation of the positive trend seen in the first week of September, during which FPIs made net investments totaling Rs 10,980 crore.
With the latest inflows, the total foreign investment in Indian equities for September now stands at Rs 27,861 crore, indicating robust interest from global investors. The experts noted that the upcoming US federal meeting on rate cuts will remain a key focus point along with corporate earnings for both domestic and foreign investors.
“Indian markets overcame last week’s negative sentiments stirred by SEBI’s deadline over FII’s disclosure norms and recession fears in the US. Despite volatility, DIIs and FIIs flows remained positive as a strong monsoon, and an expectation of an uptick in demand during the festive season drove investor sentiment. Going ahead, market focus will be on the upcoming FOMC meeting next week, while domestic market direction will also be influenced by domestic corporate earnings,” said Vinod Nair, Head of Research, Geojit Financial Services.
The consistent FPI inflows reflect the increasing attractiveness of Indian markets, driven by strong economic fundamentals, improving corporate earnings, and positive global sentiment towards emerging markets.
Earlier, the net foreign investment in August in the Indian equity market declined to Rs 7,322 crore, marking the lowest monthly investment in the past three months. This drop is particularly stark when compared to July, where foreign portfolio investors (FPIs) had invested Rs 32,359 crore, according to data from the National Securities Depository Limited (NSDL). As per the data by NSDL, throughout August, foreign investors were largely net sellers in the Indian equity market.
Doubts Revealed
Foreign Investors -: Foreign investors are people or companies from other countries who put their money into businesses or stocks in India to make a profit.
Rs 16,881 Crore -: Rs 16,881 Crore is a large amount of money. One crore is equal to 10 million, so 16,881 crore is 168.81 billion rupees.
Foreign Portfolio Investors (FPIs) -: FPIs are investors from other countries who buy stocks, bonds, or other financial assets in India. They do this to earn money from their investments.
US federal meeting -: The US federal meeting refers to a gathering of the Federal Reserve, which is the central bank of the United States. They make important decisions about interest rates and the economy.
Corporate earnings -: Corporate earnings are the profits that companies make. Investors look at these earnings to decide if they want to buy or sell stocks.
Monsoon -: Monsoon is the rainy season in India, which is very important for farming and the overall economy. A strong monsoon means good crops and more money for farmers.
Festive season -: The festive season in India includes important holidays like Diwali and Dussehra. During this time, people spend more money on gifts, clothes, and celebrations, which boosts the economy.