Foreign investors have injected close to Rs 33,700 crore in domestic equities so far in September, according to data available with the depositories.
This is primarily due to the interest rate cut in the US and the resilience of the Indian market.
Notably, this was the second-highest inflow in a month so far this year, with the last one being in March when Foreign Portfolio Investors (FPIs) infused Rs 35,100 crore.
According to data from depositories, Foreign Portfolio Investors have made a net investment of Rs 33,691 crore into equities this month (till September 20).
With this, FPIs’ investment in equities has reached Rs 76,572 crore so far this year.
In September, FPIs remained bullish, purchasing Indian equities on expectations of a US Federal Reserve rate cut and a rate cut on September 18 further fuelled their aggressive buying behaviour.
Since June, FPIs have been consistently buying equities. Before that, they pulled out funds to the tune of Rs 34,252 crore in April-May.
Apart from equities, FPIs infused Rs 7,361 crore into debt through the Voluntary Retention Route (VRR) and Rs 19,601 crore via the Fully Accessible Route (FRR), the data showed.
The VRR encourages long-term investment, while the FRR enhances liquidity and access for foreign investors.