FPI: FPIs pump Rs 86,000 crore in Indian equities in Q2, highest since December 2020

Mumbai: A pointy enhance in India’s weight in international indices, similar to MSCI and FTSE, pushed by the outperformance of Indian markets and the Fed’s charge reduce in mid-September, prompted abroad traders to pump cash into India within the September quarter. Overseas portfolio traders infused over ₹86,000 crore in July-September, the best in 15 quarters. Within the December quarter of 2020, these traders invested about ₹1.43 lakh crore in Indian shares.

Flows from overseas funds into Indian equities had been reasonable within the first-half of 2024 on issues over wealthy valuations and tight financial coverage within the US. With the greenback weakening following the speed reduce within the US and India’s weight on international indices rising, foreigners have elevated their native holdings.

The MSCI India index has gained 26% this yr, in comparison with a 13% achieve within the MSCI Rising Market index throughout this era. This outperformance has led to extra Indian firms being added to each the MSCI EM and MSCI IMI indices whereas the weights of underperforming Chinese language shares have been decreased. Within the widely-followed MSCI Rising Market index, India’s weight has elevated to twenty.7%, in comparison with China’s 23.74%.

Foreigners have additionally been lively in India’s main market together with IPOs. In 2024, FPIs invested over ₹65,000 crore within the main market in comparison with ₹33,000 crore within the secondary market.