Foreign Investors Boost Indian Stocks with ₹27,856 Crore in September; 2024 Total Surges to ₹70,737 Crore

Foreign Portfolio Investors (FPIs) bought Indian stocks worth over ₹16,800 crore this week alone. This pushes their total investments for September 2024 to ₹27,856 crore. So far this year, FPIs have invested a total of ₹70,737 crore.

In August, FPIs bought ₹7,322 crore worth of Indian shares, a drop from July’s total of ₹32,359 crore. In June, FPIs were net buyers with ₹26,565 crore, following net selling in April and May where they sold ₹8,671 crore and ₹25,586 crore worth of shares respectively.

Earlier this year, FPIs were net buyers in February and March with investments of ₹1,539 crore and ₹35,098 crore. They started 2024 on a low note, offloading shares worth ₹25,744 crore in January.

On Friday, foreign institutional investors (FIIs) were net buyers of ₹2,364.82 crore, while domestic institutional investors (DIIs) bought ₹2,532.18 crore worth of shares.

The Indian stock market ended Friday with minor losses. The Sensex closed at 82,890.94, down by 71.77 points or 0.09%, and the Nifty50 ended at 25,356.50, down by 32.40 points or 0.13%. However, the market saw a 2% gain over the week.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that FPIs bought stocks every day of the week through the exchanges, rather than the primary market. He attributed this shift to two main reasons: expectations that the US Federal Reserve will cut interest rates soon, which would lower US yields and boost investment in emerging markets, and the strong performance and resilience of the Indian market. However, he also mentioned concerns about high valuations in India.