FPIs net buyers for 2nd consecutive month; pump in Rs 26,517 cr in Sept

Foreign portfolio investors (FPIs) were net buyers for the second month in a row in the Indian market with an investment of Rs 26,517 crore in September.

As per depositories' data, FPIs pumped in Rs 13,154 crore into equities and Rs 13,363 crore in the debt segment during September 1-30.

The total net investment stood at Rs 26,517 crore. This comes after an investment of Rs 16,459 crore by FPIs in August.

Also Read: FPIs remain net buyers at Rs 21,875 cr so far in Sept

Most of the major emerging markets witnessed FPI inflows in September with India reporting the highest FPI inflow, noted Shrikant Chouhan, executive vice-president (equity technical research) at Kotak Securities.

South Korea saw an FPI investment of $884 million, Thailand $338 million, and Indonesia $305 million, he said.

"The current trend indicates that FPIs are now willing to look beyond these short-term challenges and focus on the larger and long-term picture," said Himanshu Srivastava, associate director (research), Morningstar India.

FPIs are slowly dropping their cautious stance and gaining higher conviction on the Indian markets.

Also Read: FPIs net buyers in August, pump in Rs 16,459 cr in Indian markets

The Indian equity market offers an attractive investment proposition from the long-term perspective. With an improving macro environment and positive outlook, FPIs are again focusing their attention on Indian equities, he added.

FPI flows is expected to remain volatile in the emerging markets, once the US Federal Reserve increase the rate, said Chouhan.