Record High FPI Investment in Indian Stock Market Reaches Rs 23,659.55 Crore
Foreign Portfolio Investor (FPI) investment in the Indian stock market surged to a record high this week, with net investments totaling Rs 23,659.55 crore, according to data from the National Securities Depository Limited (NSDL).
Weekly Investment Highlights
The highest inflow was recorded on Monday, when FPIs pumped Rs 15,181 crore into Indian equities. This strong investment continued throughout the week, with Friday’s net investment reaching Rs 8,537 crore, helping push the total weekly net investment past the Rs 23,000 crore mark.
September’s Record Investment
This significant inflow brings the total FPI investment for September to Rs 57,359 crore, marking the highest FPI investment in Indian equities so far this year. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “FIIs have invested Rs 57,359 crores so far in September with investment through the exchanges alone touching Rs 46,480 crores. Total investment by FIIs so far in 2024 now stands at Rs 100,245 crores. This has contributed to the stability in INR this year.”
Impact of US Fed’s Decision
After the US Fed lowered interest rates, the liquidity inflow to Indian markets increased. The consistent investment by foreign investors highlights growing confidence in India’s stock markets, with many seeking to capitalize on strong economic growth and favorable market conditions.
Domestic Investors’ Contribution
The data also highlighted that the investment by domestic investors remained strong this week. Domestic institutional investors pumped Rs 15,961.71 crore into Indian stocks, which also helped the indices touch new highs this week.
Comparative Analysis
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).
Doubts Revealed
FPI -: FPI stands for Foreign Portfolio Investor. These are people or companies from other countries who invest money in India’s stock market.
Indian Stock Market -: The Indian Stock Market is a place where people buy and sell shares of companies in India. It’s like a big marketplace for stocks.
Rs 23,659.55 Crore -: Rs 23,659.55 Crore is a way to say a very large amount of money in Indian currency, Rupees. One crore is equal to 10 million rupees.
Geojit Financial Services -: Geojit Financial Services is a company in India that helps people invest their money in stocks and other financial products.
Indian Rupee -: The Indian Rupee is the money used in India. It’s like how the US has dollars and Europe has euros.
Domestic Investors -: Domestic Investors are people or companies from India who invest their money in the Indian stock market.
