Foreign Portfolio Investor (FPI) investment in the Indian stock market has reached a record high this week, with net investments totaling Rs 23,659.55 crore, according to data from the National Securities Depository Limited (NSDL). The highest inflow was recorded on Monday, with FPIs pumping Rs 15,181 crore into Indian equities. This strong investment trend continued throughout the week, with Friday’s net investment reaching Rs 8,537 crore, pushing the total weekly net investment past the Rs 23,000 crore mark. In September, total FPI investment reached Rs 57,359 crore, making it the highest FPI investment in Indian equities so far this year.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that FIIs have invested Rs 100,245 crores so far in 2024, with Rs 57,359 crores invested in September alone. The stability of the Indian Rupee this year has been largely attributed to this consistent investment by foreign investors. Following the US Fed’s decision to lower interest rates, liquidity inflow to Indian markets has increased, further boosting foreign investment. This trend reflects growing confidence in India’s stock markets, with investors looking to capitalize on strong economic growth and favorable market conditions.
The data also revealed that domestic institutional investors have been actively investing in the Indian stock market, pumping Rs 15,961.71 crore into Indian stocks this week. This, combined with the record-breaking FPI investment, has helped push the indices to new highs. The consistent investment by both foreign and domestic investors is expected to provide further momentum to Indian equities, potentially leading to sustained market growth in the coming months.
However, the net foreign investment in August saw a decline to Rs 7,322 crore, marking the lowest monthly investment in the past three months. In July, foreign portfolio investors had invested Rs 32,359 crore, as per NSDL data. Throughout August, foreign investors were largely net sellers in the Indian equity market. This decline in foreign investment in August makes the current record-breaking FPI investment even more significant, indicating a strong rebound in investor confidence in Indian equities.
