With foreign portfolio investors (FPIs) purchasing shares valued at nearly $7 billion, September has emerged as the strongest month for foreign inflows in 2024. Based on data provided by NSDL, this represents the greatest net buying since December 2023.
From $873 million in August to over $6.85 billion in September, the FPI’s net buying activity increased dramatically. Additionally, since December last year, when FPIs bought $7.9 billion worth of Indian stocks, this constitutes the most monthly buying activity.
FPIs have acquired almost $12 billion worth of Indian stocks so far this year, making them net purchasers of the country’s stock. This strong trend is attributed by analysts to dovish signals from the US Federal Reserve, especially after the rate cut on September 18.
By comparison, during 2024, inflows to India totaled $5.72 billion, while inflows to Indonesia came to $1.81 billion, Malaysia came to $0.20 billion, the Philippines to $0.34 billion, and Thailand to $0.95 billion. As the year goes on, there is still hope for foreign investments in India because foreign portfolio investors (FPIs) are still quite interested in the country’s markets, especially in debt and stocks.
By September, FPI investments in all categories—debt, equity, mutual funds (MF), hybrid funds, alternative investment funds (AIF), and equity—had surpassed the $28.70 billion total from the previous year to almost $30.66 billion.
Although foreign direct investment (FDI) inflows have benefited India, Vijayakumar also pointed to notable inflows into the Hong Kong market, which saw a 14 percent gain in September.
