Mumbai, . Foreign institutional investors (FIIs) invested Rs 14,064 crore in the Indian stock market this week, reflecting the stability of the Indian market amid strong economic performance. According to data released on Saturday, the Indian market remained strong amid strong economic performance.
According to NSDL data, the total FII investment till September 20 was Rs 33,699 crore, taking the total FII investment in the country so far this year to Rs 76,585 crore.
According to market analysts, the FII buying spree is likely to continue in the coming days.
According to Manoj Purohit of BDO India, the US Federal Reserve has cut the interest rate by 50 basis points for the first time in the last four years, which was more than expected. Foreign portfolio investors (FPIs) are cautious about this move and have reacted passively to it.
Manoj Purohit said, “Indian markets positively showed their resilience based on strong economy performance on strong fundamentals and expected GDP growth.”
The rate of investment was the highest in September 2024, the last time it happened was in March. Analysts said that FII investment in the week ended September 20 led to a 0.4 percent increase in the rupee. This may further boost FII buying.
Despite global uncertainties, the key factors that make emerging markets like India attractive are ‘balanced fiscal deficit, the impact of interest rate cuts on the Indian currency, strong valuations and RBI’s approach to keep inflation under control without cutting interest rates.’
Analysts said that the IPOs announced this year attracted a large share of foreign funds. Due to this the Indian stock market strengthened. Foreign investors want to invest in India instead of other risky countries. The Indian market is now attractive and safe.
Now all eyes are on the RBI whether it will cut the repo rate in October or wait till December. There is a strong case for cutting interest rates modestly to control food inflation, with domestic savings reducing interest outgo, which hurts banks’ retail lending business.
Manoj Purohit of BDO India said India’s monetary policy has remained more conservative despite the Fed’s action so far.
