Foreign investors are investing money in the stock market frantically, invested 57,359 crores in September, know why they are so crazy?

Foreign investors have once again become crazy about the Indian stock market. The speed at which they are investing shows that they are afraid of being left behind. They feel that they should not miss this boom in the Indian market. Let us tell you that foreign portfolio investors (FPIs) have invested Rs 57,359 crore in the Indian stock markets so far in September, which is a nine-month high. After the US central bank Federal Reserve cut the key interest rates by 0.50 percent, FPI investment in the Indian market is continuously increasing. 

Investments above Rs 1 lakh crore 

According to the data of the depository, this year i.e. in 2024, FPI investment in Indian stocks has crossed the figure of Rs 1 lakh crore. Robin Arya, Smallcase Manager and Founder and Chief Executive Officer (CEO) of research analyst company Golfy, said, the FPI flow will remain strong going forward. FPIs are betting on the Indian market due to the reduction in interest rates globally and India’s strong fundamentals. Along with this, he said that the decisions related to inflation management and liquidity of the Reserve Bank of India will be important to maintain this momentum. According to the data, FPIs have made a net investment of Rs 57,359 crore in stocks till September 27. There is still one trading session left for this month.

Fastest investment after December 2023 

This is the highest net inflow since December 2023. At that time FPIs had invested Rs 66,135 crore in shares. FPIs have been net buyers since June. In April-May, they withdrew Rs 34,252 crore from shares. Overall, FPIs have been net buyers in all months except January, April, and May this year. Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said that many reasons have led to a surge in FPI inflows in Indian stock markets. One of the main reasons for this is the start of the interest rate cut cycle by the US central bank. According to the data, so far in September, FPIs have invested Rs 8,543 crore in the debt or bond market through the Voluntary Retention Route (VRR) and Rs 22,023 crore through the Fully Accessible Route (FRR).