The first working week of September has closed. Due to selling pressure, there was a dip in the market during the first week, but foreign investors have returned strongly to the market this month. Foreign Portfolio Investors (FPIs) have invested over Rs 19,000 crore in the first few days of September.
According to data from the National Securities Depository Limited (NSDL), foreign investors have invested Rs 19,087 crore in the market till September 6. The last trading day of the first week of September was Friday, September 6. After the weekend, the market will reopen on September 9.
In which divisions did foreign investors invest?
Foreign investors invested in debt, hybrid, debt-VRR and equity divisions. FPIs have invested Rs 10,978 crore in Indian equities. On the other hand, Rs 1,388 crore have been invested in the primary market. This month, the total investment in the debt market has come down to Rs 94 crore.
read this too
Why did foreign investors return to the Indian market?
Domestic equity benchmarks Sensex and Nifty 50 registered record gains in the month of August. At the same time, due to rising expectations of a US interest rate cut, the global market also took a firm stance. This flexibility of the Indian market has once again attracted foreign investors towards the domestic market.
In the Indian market, Nifty 50 has seen a year-on-year growth of 16 per cent, while Sensex has seen a growth of 14 per cent.
Why is the foreign investor important?
Foreign portfolio investors are very important for any market. FPIs play an important role in increasing liquidity in the market. When foreign investors invest large amounts of money in a country’s market, its effect is seen in the development of the country’s economy.
Investment from foreign portfolio investors also strengthens the country’s credibility in the international market and increases people’s confidence.
