Foreign portfolio investors (FPI) remained net buyers in equity with investment touching a 19-month high on expectations that Indian economy and markets will outperform the US and other markets.

Data from NSDL showed that FPIs investment in equity were Rs 51,204 crore as compared to inflows of Rs 4,989 crore in the previous month. While, in September the inflows are around Rs 4,260 crore.

The last time when investment was high was on December 2020 worth Rs 62,016 crore.

“FPIs invested Rs 47,296 crorein equity in August through stock exchanges. (NSDL data) After relentless selling from October 2021 through June 2022, FPIs turned buyers in July and the buying continued in August with increased momentum. Now there is an increasing recognition of the fact that Indian economy and markets will outperform the US, Euro Zone and China this year and next. Capital flows are responding to this potential trend. The fact that FPI flows into India are happening when the dollar index is appreciating is a vote of confidence in the Indian economy,” said V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Since the foreign investors starting buying Indian equities heavily in the end of July, the markets have rallied sharply.

Sensex and Nifty both increased more than 7 per cent since then. Sensex which was trading at 55,268.49 on July 26, was at 58,766.59 on September 1, while Nifty, on July 26 was hovering at 16,483.85,