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Foreign portfolio investors (FPIs) pumped in a total of Rs 26,517 crore in the month of September, according to data released by depositories. Of this, Rs 13,154 crore were invested in equities and Rs 13,363 crore in the debt segment between September 1-30. The investments made them net buyers for the second month in a row in the Indian market as they invested a sum of Rs 16,459 crore in the month of August.

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 USD 884 million, Thailand USD 338 million, and Indonesia USD 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) at Morningstar India.

FPIs are slowly dropping their cautious stance and gaining higher conviction on the 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, Chouhan added.