Mumbai: Foreign Portfolio Investors (FPIs) continued to buy into the Indian equities market in the week ended September 19, buoyed by the US Fed announcement that it will maintain interest rates to near zero for a "considerable time" even after its bond-buying programme ends, as also stable government policies.
The foreign institutional investors (FIIs) along with sub-accounts and qualified foreign investors have been clubbed together by market regulator Securities and Exchange Board of India (SEBI) to create a new investor category called FPIs.
The FPIs bought shares worth $354.24 million or Rs 2,159.67 crore during the week ended Sept 19, according to data with the National Securities Depository Limited (NSDL).
For the week ended Sep 12, the FPIs had bought shares worth $445.32 million or Rs 2,693.02 crore, which helped propel the Indian equities market to subsequent new highs.
"With the US rate rise possibilities becoming a more distant reality, emerging economies including India can expect to keep their hot monies "hot" for some more time," said Debopam Chaudhuri, chief economist, ZyFin Research.
"This is critical for India under current circumstances when the domestic economy is undergoing a healing process."
The FPIs had remained net buyers Friday. They bought shares worth $25.31 million, or Rs 154.53 crore, on Sep 19.
Expectations of stable growth coupled with an overall expectation of a further reform push by the new government have led to positive investor sentiments.
