Foreign Institutional Investor (FII) ownership in Indian listed companies reached a 6-month high in September, driven mainly by record investments following the US Federal Reserve's dovish stance and interest rate cuts.

FII assets across debt, equity, AIFs, mutual funds and hybrid funds have crossed $1 trillion for the first time, growing 26.7% since the beginning of the year. This is the highest increase since December 2017. Equity assets under custody (AUC) stood at $930 billion and debt and other at $76.83 billion during this period.

FII assets have seen a 25.5% increase during 2023, with the value increasing from $633.56 billion in 2022 to $795.20 billion. The only decline in total FII assets has been seen in 2022 and 2018. FII ownership in Indian equities has increased to 16.43%, the highest since March 2024. FIIs invested nearly $7 billion in Indian equities during September, much higher than $873 million in August. This is the highest monthly investment since December 2023. During that time, FPIs bought shares worth $7.9 billion. Bets placed on these sectors FIIs have invested more than Rs 27,200 crore in financial services during September, which is the largest single sector allocation. Apart from this, Rs 6,639 crore has been invested in healthcare and Rs 5,375 crore in real estate. Apart from this, other sectors attracting investment include FMCG (Rs 4,900 crore), capital goods (Rs 4,000 crore) and consumer durables (Rs 3,736 crore), telecom (Rs 1,935 crore), services (Rs 1,725 ​​​​crore), chemicals (Rs 1,445 crore), power (Rs 1,409 crore), metal and mining (Rs 1,155 crore) and construction (Rs 1,095 crore). Foreign investors pulled out from these sectors. They sold off consumer services (Rs 2,940 crore), automobile (Rs 2,106 crore) and information sector (Rs 1,219 crore). Apart from this, construction material (Rs 901 crore) and oil & gas (Rs 640 crore) also faced selling. Apart from this, FIIs invested $3.75 billion in Indian debt, taking the total debt investment for 2024 to $17.09 billion. So far this year, the total investment in debt, equity, AIF, mutual funds and hybrid funds has reached about $30.66 billion, which is more than last year's $28.70 billion.