Foreign Portfolio Investors (FPIs) were net buyers in the Indian market for the second month in a row, investing Rs 26,517 crore in September. According to data from custodians, 130 FPIs of 13,154 billion rupees flowed to equities and 13,363 crore to the debt segment in September. Total net investment was Rs 26,517 million, following an investment of Rs 16,459 million by FPIs in August.
Most major emerging markets saw FPI inflows in September, with India having the highest FPI inflow, said Shrikant Chouhan, executive vice president (technical equity research) at Kotak Securities.
South Korea recorded an FPI investment of $ 884 million, Thailand $ 338 million and Indonesia $ 305 million, it said.
“The current trend shows that FPIs are now ready to look beyond these short term challenges and focus on the bigger picture and longer term,” said Himanshu Srivastava, Associate Director (Research) at Morningstar India.
FPI are slowly losing their cautious stance and gaining more conviction in the Indian markets.
The Indian stock market offers an attractive investment proposition from a long-term perspective. With an improving macroeconomic environment and a positive outlook, FPIs are refocusing their attention on Indian stocks, he added. 4,444 FPI flows in emerging markets are expected to remain volatile once the US Federal Reserve raises interest rates, Chouhan said.