Foreign investors pump ₹16,881 crore into Indian stocks this week

Foreign Portfolio Investors (FPIs) continued their bullish stance on Indian stocks, infusing ₹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 ₹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 ₹10,980 crore.

With the latest inflows, the total foreign investment in Indian equities for September now stands at ₹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 ₹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 ₹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.