look news india
New Delhi: Indian stock markets are getting good benefits from the cut in interest rates by the US Federal Reserve after almost four years. The purchases made by foreign portfolio investors (FPIs) in Indian markets in September are an indication of this. According to National Securities Depository Limited (NSDL) data, FPIs bought Rs 57,359 crore in September till September 27. This is the highest FPI inflow in any single month so far in calendar year 2024. There is still one working day left in September. In such a situation the figure may increase.
According to NSDL data, September was the fourth consecutive month when FPIs were net buyers. FPI had earlier made a net investment of Rs 7320 crore in August, Rs 32365 crore in July and Rs 26565 crore in June. With this, the net investment of FPI in equity markets has crossed Rs 1 lakh crore for the first time in the calendar year 2024. There was a total net investment of Rs 171107 crore in the market. Market experts say that due to increase in FPI investment in domestic markets, the Indian currency has also become stable.
FPI investment in debt or bond markets has remained strong in 2024 but declined in September. According to the data, till September 27, FPIs have directly invested Rs 877 crore in the debt market, whereas in August this investment was Rs 17960 crore. FPI investment in debt markets has reached Rs 1.09 lakh crore in the full calendar year. According to NSDL, FPI investments in equity, debt and other investment instruments have crossed Rs 2.55 lakh crore so far.
Investment increased through fully accessible route
According to NSDL, in September FPIs have given greater preference to investing through voluntary retention route (VRR) and fully accessible (FAR) rather than direct debt markets. According to the data, so far this month FPIs have invested Rs 8543 crore through VRR and Rs 22023 crore through FAR. VRR promotes long-term investment, while FAR facilitates access to foreign investors by increasing liquidity. Experts say that due to the strength of the economy, Indian markets have become very attractive for foreign investors.
FPI investment in 2024
month equity loan
January-25,744 19,837
February 1,539 22,419
March 35,098 13,602
April -8,671 -10,949
May -25,586 8,761
June 26,565 14,955
July 32,365 22,363
August 7,320 17,960
September* 57,359 877
Note: Amount in crores of rupees
*Data till 27th September
Sensex rose more than 3200 points
Indian stock markets also reached record highs in September thanks to strong FPI inflows. Meanwhile, Sensex has increased by 3206 points i.e. about 3.9 percent. Similarly, NSE Nifty increased by 943 points or about 3.7 percent during September. On September 26 itself, Sensex closed at all-time high of 85836 and Nifty at 26216.