Foreign investors continue to have confidence in the Indian stock market, invest Rs 12,000 crore in September

The Indian stock market has seen a lot of volatility in the past. Despite this, foreign investors continue to have faith in the Indian stock market. Foreign investors (FPIs) have invested a net Rs 12,000 crore in the Indian stock market in September. 

This investment was made at a time when inflation has started in the US and the rate of interest rate hike is also showing signs of slowing down. 

Foreign investors bullish

According to the data released by the depositories, this is the third consecutive month that foreign investors are investing in the Indian stock market. Earlier in the month of August, foreign investors had invested Rs 51,200 crore in the stock market and Rs 5,000 crore in July. Before July, foreign investors had sold the Indian stock market for nine consecutive months. This sell-off started in October 2021. During this period, foreign investors had withdrawn about Rs 2.46 lakh crore from the Indian stock market. 

Ups and downs can be seen ahead

Foreign investors have invested Rs 12,084 crore between September 1 and September 16. Shrikant Chauhan, Head of Equity Research, Kotak Securities, believes that investments coming from foreign investors may see huge volatility in the coming times. Explaining the reason behind this, he said that the recent inflation figures in America have seen less reduction than expected. For this reason, the Federal Reserve Bank (the central bank of America) can tighten the monetary policy stance.