The FII buying that was observed on October 28 was unquestionably the high point of the market activity. The net purchase price of foreign institutional investors in Tuesday’s transaction was Rs 10,339.80 crore. Since June 26, this is the highest amount that FIIs have net bought in a single day. Furthermore, the flows in October are expected to reach three-month highs.
FIIs have purchased Rs 10,040 crore so far in October. For the first time since June, they have become net buyers, and this month’s influx has exceeded their net purchases in June. Is this trend a passing fad or a permanent shift?
The FOMC is in the middle of its two-day meeting, which runs from October 28 to 29. Amidst the US government shutdown, US Fed Chief Jerome Powell is anticipated to declare a rate drop. In September, the United States received its first rate cut of 2025. One of the main concerns for the US economy was the slowdown in the labor market.
In actuality, the dollar has strengthened significantly during the past month. Over the past 30 days, the dollar has appreciated more than 1% vs a basket of currencies, and the dollar index is now trading close to 98, far off the 2025 lows. In recent sessions, the rupee has also gained some strength.
Investor confidence is rising again. October saw an increase in the rupee, but the September quarter saw a decline in earnings. All helped to make FPIs’ net inflows positive. But we’ll have to wait and see if it will last past June or if it’s an expiry play.
The markets are starting to receive some support from corporate results. The majority of market participants stated that they think the September quarter’s results have bottomed out. The numbers so far have been consistent with projections, and management commentary indicates that they will improve in the second half.
