FPI inflow at 9-month high, foreign investors are liking Indian stock market
FPI Inflow: One of the reasons for the boom in the Indian stock market is the ongoing investment by foreign investors. In the last 9 months, the highest FPI inflow has happened in September. This year, foreign investors have continuously invested in the Indian stock market. FPI outflow was seen in January, April and May. If we talk about September, foreign investors invested Rs 57359 crore.
Investment in the Indian stock market by foreign investors is continuing. September's FII inflow data has been released. According to this data, foreign investors invested Rs 57,359 crore in the Indian stock market in the month of September. FII inflow has reached a 9-month high.
The US Federal Reserve's interest rate cut has resulted in an increase in foreign investor inflows. According to depository data, foreign investors have invested over Rs 1 lakh crore this year.
According to the data, till September 27, 2024, foreign investors have invested Rs 57,359 crore. This month, foreign investors had withdrawn only on one day, on all other days there was FII inflow. Foreign investors had invested Rs 66,135 crore in equity in December 2023. This is the highest inflow so far.
They pulled out Rs 34,252 crore from Indian markets in April-May this year. This year, they have invested in all months except January, April and May.
There are several reasons contributing to the rise in FPI inflow. The most prominent among these are the decisions of the Fed Reserve. On September 18 this month, the US central bank Federal Reserve decided to cut the interest rate by 0.50 percent. Since then, the inflow of FPI has increased. At the same time, due to good signals from the global market and India's growth rate, investors are also investing in the Indian market. The IPOs of upcoming big companies are also one of the major reasons for investment.
In the debt market, FPIs invested Rs 8,543 crore through the Voluntary Retention Route (VRR) and Rs 22,023 crore through the Fully Accessible Route (FRR) in September.
