Foreign Portfolio Investor (FPI) investments in the Indian stock market surged to a record high this week, with net inflows totaling Rs 23,659.55 crore, according to data from the National Securities Depository Limited (NSDL).
The data revealed that the highest inflow was recorded on Monday when FPIs pumped Rs 15,181 crore into Indian equities. This robust investment continued through the week, with Friday’s net inflows amounting to Rs 8,537 crore, pushing the total weekly investment past Rs 23,000 crore.
This significant inflow has brought the total FPI investment for September to Rs 57,359 crore, marking the highest foreign portfolio investment in Indian equities for 2024.
“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,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The surge in foreign investments follows a rate cut by the US Federal Reserve, which has led to increased liquidity inflows into Indian markets. The consistent investments by FPIs indicate growing confidence in India’s stock markets, driven by strong economic growth and favorable market conditions.
Data from NSDL also highlighted robust investment activity by domestic institutional investors (DIIs), who injected Rs 15,961.71 crore into Indian stocks during the same week. These investments have played a key role in helping the indices reach new highs.
The record-breaking inflows are expected to provide further momentum to Indian equities, potentially fueling sustained market growth in the months ahead.
Earlier, foreign portfolio investments in Indian equities had slowed significantly in August, with net inflows dropping to Rs 7,322 crore—the lowest monthly figure in the past three months. This was in stark contrast to July, when FPIs had invested Rs 32,359 crore, according to NSDL data. Throughout August, foreign investors were largely net sellers in the Indian equity market, marking a temporary shift in their investment pattern.
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