In September, foreign portfolio investors invested a large amount in the Indian stock market. This has raised hopes that the US Federal Reserve will cut interest rates, which could lead to more investment in emerging markets. According to NSDL data, from September 1 to 17, FPLS has made a net investment of $ 3,682 million i.e. Rs 30,908.1 crore in Indian stocks. This investment is more than the monthly investment in six out of eight months of 2024. On September 13, FPLS invested $ 949 million, which is the second largest investment this year. Earlier, on August 30, the largest one-day investment of $ 1,731 million was made.
This surge in September has brought FPLs’ net investment in 2024 so far to $1,450 million, while at the end of August it was in a position of net withdrawal of $1,417 million. If the pace of investment remains the same, September’s investment could surpass the largest monthly investment of 2024 so far ($4,241 million in March). However, this will have a big impact of the Federal Reserve policy, which will be announced.
FPLs have also invested more in the secondary market in September, whereas in earlier months they were mainly focusing on the primary market. So far in September, they have invested $2,867 million in the secondary market and $815 million in the primary market. From January to August of 2024, FPLs had invested $6,580.8 million in the primary market, while they were net sellers of $1,417 million in the secondary market. In contrast, investment by domestic funds remained slow in September. According to SEBI, till September 11, domestic funds had invested Rs 8,951 crore, which is much less than Rs 17,570 crore in the same period last month. ( PLC & GT )
