Share Market: Foreign investors bullish about the Indian stock market, invested Rs 8,600 crore in September

Share Market Foreign investors (FPIs) are continuously investing in the Indian stock market. In the month of August before September, foreign investors had invested Rs 51,200 crore in the Indian stock market and Rs 5000 crore in July.

Share Market: Foreign investors bullish about the Indian stock market, invested Rs 8,600 crore in September
Foreign investors bullish about the Indian stock market, invested Rs 8,600 crore in September, image source: fortuneindia

Amidst the ongoing volatility in the Indian stock market, the confidence of foreign investors in India remains intact. Foreign investors have invested Rs 8,600 crore in the market till September 1-23. However, the pace of investment has slowed down slightly as compared to earlier.

VK Vijay Kumar, Chief Investment Strategist, Geojit Financial Services, says that due to the depreciation of the rupee against the dollar, he feels that foreign investors (FPIs) will hardly be aggressive and invest in the Indian market for the time being. 

Foreign investment may be affected

Basant Maheshwari, co-founder and smallcase manager, Basant Maheshwari Wealth Advisor LLP, says that the commentary from the US central bank Federal Reserve indicates that interest rates may increase further in the coming times. With this, due to the signs of recession, falling rupee and rising tension between Russia-Ukraine, investment from foreign investors may be affected in the coming times. 

Foreign investors bullish

Foreign investors have been looking bullish on the Indian stock market for the last three months. In the month of August, foreign investors had invested Rs 51,200 crore in the Indian stock market. Earlier in July, an investment of Rs 5000 crore was made. At the same time, since September, foreign investors have invested a total of Rs 8,638 crore in the Indian market. 

effect of interest rate hike

In recent days, interest rates were increased by 75 basis points, or 0.75 percent, by the US central bank, the Federal Reserve. Since then, the Indian stock markets have been sliding from higher levels. According to Shrikant Chauhan, Head of Equity Research, Kotak Securities, the risk of recession in the US has increased after the Fed's announcement of increasing the interest rate, due to which the Indian stock market is being affected along with the US. Let us tell you, after the announcement of increasing the interest rate, foreign investors have sold 2500 crores in the last two sessions.