FPIs Reverse Course in October: Offload ₹27,142 Crore in Indian Equities After Fed Rate Cut Sparks Market Shift
Foreign portfolio investors (FPIs) have made a strong return to the Indian markets in October, especially after the US Federal Reserve cut interest rates by 50 basis points. This interest rate cut encouraged FPIs to resume buying, breaking the slower trend seen earlier.
In June and July, FPIs were steady buyers after the uncertainty around elections calmed down, bringing stability back to the Indian markets. However, with the start of the new fiscal year 2024-25 (FY25), they slowed down their buying.
As of September 27, FPIs invested ₹57,359 crore in Indian equities, with a total net investment of ₹91,702 crore, which includes debt, hybrid investments, and equities, based on data from the National Securities Depository Ltd (NSDL). In September, FPIs invested ₹8,543 crore in the debt market, and the month also recorded the highest FPI inflows in equities for the year. This has pushed total investments to a nine-month high.
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