Foreign portfolio investors (FPIs) have invested a net Rs 27,856 crore in the Indian stock markets in the first 15 days of September. The main reasons behind this are the strength of the Indian market and the increasing expectation of interest rate cuts in the US. There is a general consensus that the Federal Reserve will start a cycle of interest rate cuts this month. This will reduce the yield on bonds in the US. FPIs have been continuous buyers in the Indian market since June. Earlier, in April-May, they had withdrawn Rs 34,252 crore from shares.
According to news agency PTI, Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment Research India, said that now everyone’s focus is on the meeting of the US central bank Federal Reserve. The results of the meeting will determine the investment trend of FPIs in Indian stocks. The meeting is scheduled to be held on September 17-18.
7,320 crores were invested in August
According to the depository data, FPIs have invested a net Rs 27,856 crore in shares till September 13 this month. With this, FPI investment in shares so far this year has reached Rs 70,737 crore. In August, they invested Rs 7,320 crore in the domestic stock market, Rs 32,365 crore in July and Rs 26,565 crore in June.
How much investment is there in the bond market
Apart from shares, foreign portfolio investors invested Rs 7,525 crore in the debt or bond market through the voluntary retention route in the first two weeks of September. Also, Rs 14,805 crore was invested in designated government debt securities under the Fully Accessible Route (FAR). FPIs invested Rs 17,960 crore in the bond market in August.
