FPIs in September raised Rs. 27,856 crore worth of Indian equities were bought. 2024 net purchases increased to Rs. 70,737 crores

Foreign Portfolio Investors (FPIs) this week invested Rs. 16,800 crore worth of Indian equity purchases, taking the September total to Rs. 27,856 crore was taken. The total investment by them till now in 2024 is Rs 70,737 crore.

In August, FPIs raised Rs. 7,322 crore of domestic stock purchases which fell month-on-month from July while total purchases stood at Rs. 32,359 crores. When in June they got Rs. 26,565 crore were net buyers while in April and May they were Rs. 8,671 crore and Rs. 25,586 crore worth of equity was sold.

In February and March they paid Rs. 1,539 crore and Rs. 35,098 crore were net buyers after starting the year on a negative note in January when they bought Rs. 25,744 crore shares were offloaded.

On Friday, foreign institutional investors (FIIs) raised Rs. 2,364.82 crore were net buyers while Domestic Institutional Investors (DIIs) also contributed Rs. 2,532.18 crore were net buyers.

Indian benchmark indices ended in the red on Friday and witnessed range-bound trade during the day. While the S&P BSE Sensex settled down 71.77 or 0.09% at 82,890.94, the broader Nifty50 closed down 32.40 or 0.13% at 25,356.50. The total weekly profit was 2%.

“A notable trend in the market for the week ended September 13 is that FIIs were buyers of equities in the cash market on all days of the week. It is important to note that unlike previous weeks when FIIs were buyers through the primary market, this week they bought equities to the tune of Rs 22,707 crore. There were buyers through the exchanges,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

He cited two reasons why FIIs changed their strategy from selling to buying. One, there is now a consensus that the Fed will start cutting rates this month and pushing down US yields which will ease the flow of funds from the US to emerging markets, he reasoned. Secondly, the Indian market remains highly resilient with strong momentum and losing the Indian market would be a bad strategy for FIIs.

However, he said high valuations in India are a matter of concern.

Also Read: Fed Factor: Rate Cut Theory Suggests Higher Equity Valuations, But History Tells a Different Story

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