Mumbai: In the September quarter of the current financial year, investment by foreign institutional investors in the domestic equity market increased by 15 percent on an annual basis to $ 651 billion. As the interest of foreign investors in China is decreasing, India is benefiting.
This rise has been seen due to the good performance of the domestic stock market and strong inflow of foreign investors. Equity investments by foreign investors were valued at $566 billion in the September 2022 quarter. According to a report, the value has increased by four percent compared to the June quarter of the current financial year.
.Despite the increase in the investment value of FPIs, the contribution of FPIs to the market cap of the Indian equity market declined marginally to 16.95 per cent in the September quarter from 17.33 per cent in the June quarter.
Foreign investors made a net purchase of $5.38 billion in Indian equities in the September quarter. Foreign investors are positive towards India due to stable earnings growth and strong fundamentals of companies in India compared to the weakness of China’s economy.
However, due to increase in bond yields in the US, foreign investors withdrew in the period of August and September compared to July.
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