New Delhi : Foreign investors have significantly boosted their investment in Indian equity markets, injecting nearly ₹34,000 crore in September 2024 alone. According to data from depositories, foreign portfolio investors (FPIs) poured ₹33,691 crore into Indian equities this month. However, there was a slight withdrawal of ₹245 crore from the debt markets, resulting in a total net inflow of ₹33,446 crore into the Indian capital markets for September.
This inflow continues the trend of increasing foreign investment, as this marks the fourth consecutive month of net inflows into Indian markets. Prior to this, foreign investors had already demonstrated robust confidence in India’s economic and market potential, with sustained capital inflows that have positively impacted market sentiment.
Cumulatively, in 2024, FPIs have invested over ₹1.8 lakh crore in Indian capital markets, reflecting strong international interest in the country’s economic growth story. Of this, ₹76,572 crore has been directed toward equities, while ₹108,662 crore has been allocated to debt instruments. This balance of investments highlights the appeal of both India’s stock market for long-term growth and the debt market for more secure, steady returns.
Several factors have contributed to the increased FPI interest in India. The country’s relatively stable macroeconomic indicators, strong corporate earnings, and policy reforms have made it an attractive investment destination. Additionally, India’s growth prospects, driven by its young workforce, expanding middle class, and strategic economic reforms, have also played a key role in drawing foreign capital. Despite global economic uncertainties, India has managed to project itself as a safe and promising market for international investors.
Furthermore, the Reserve Bank of India’s monetary policies and the government’s continued push for infrastructure development and economic recovery post-pandemic have helped maintain investor confidence. Sectors such as technology, financial services, consumer goods, and infrastructure have attracted considerable foreign investment, reflecting a diversified interest in the country’s economic future.
However, the slight withdrawal of ₹245 crore from the debt markets in September signals a cautious approach by FPIs toward fixed-income investments, likely influenced by global factors such as interest rate fluctuations and inflation concerns in major economies, particularly the United States.
As India continues to position itself as a global investment hub, experts predict that FPI inflows will remain strong for the rest of the year, especially if the country’s economic fundamentals remain robust. The continued foreign interest is seen as a positive indicator for the Indian equity markets, as these investments provide liquidity and stability, helping to drive further growth in various sectors of the economy.
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