FPI Buying In Indian Stock Market: Foreign portfolio investors (FPIs) have invested Rs 27,856 crore in domestic equities in the first two weeks of September. The strong performance of the Indian market and the possibility of a cut in US interest rates can be considered a major reason for this. Investors fear that the US Federal Reserve will cut interest rates this month, if this happens then the yield on US bonds will decrease. Earlier, investors had withdrawn Rs 34,252 crore from the Indian market in April-May. However, after this, FPIs have been continuously buying equities since June.

Experts say that 'everyone's attention is on the US Federal Reserve meeting to be held next week. The results of this meeting will determine the trend of FPI investment in Indian shares. 

FPI equity investment reaches Rs 70,737 crore

According to the data of depositories, FPIs made a net investment of Rs 27,856 crore in shares till this month (September 13). So far this year, FPIs' equity investment has reached Rs 70,737 crore. Foreign portfolio investors have made huge investments in the Indian market through other routes besides shares in the first two weeks of September. FPIs invested Rs 7525 crore in the bond market through the voluntary retention route and Rs 14,805 crore in government debt securities through the fully accessible route. These investors had invested Rs 17,690 crore in the bond market in August.

Not taking advantage of the boom in the Indian market is a losing deal

There can be two main reasons for the increase in buying by foreign portfolio investors

1) There is now a consensus that the US Federal Reserve will start cutting interest rates this month, which will reduce US bond yields.

2) The Indian market is fast growing and also has a flexible attitude to withstand big shocks, so if FPIs miss investing here then it will be a loss-making deal.

FPIs invest in India at the right time

The investment flow has increased due to the world's ever-increasing trust in the Indian economy and efforts to move ahead with strength. Amid positive market response and political stability, FPIs are investing in the Indian economy at the right time, which is leading to growth. Due to the increasing investment and trust of foreign investors, the Sensex touched an all-time high of 83,116 and Nifty of 25,433 in the Indian stock market on Friday.