Nifty 50 slid 0.4% to 22,485 points after the National Securities Depository released data on foreign portfolio investor inflows.
The depository reported 164 new registrations under the Single Window Automatic and Generalised Access for Trusted Foreign Investors, a figure that accounted for the bulk of the ₹702 billion net inflow into the market during July and August. In September, investors pulled out ₹278.1 billion, a reversal that has tempered enthusiasm.
The fast‑track route, launched on June 1, offers a 10‑year registration period, up from the previous 3‑year cycle, and is intended for low‑risk investors such as sovereign wealth funds, pension funds, insurance companies, and regulated public retail funds—entities that represent 70% of total foreign investment in India. The scheme’s launch comes as overseas ownership of Indian equities sits at a 17‑year low.
ICICI Securities analyst Rakesh Sharma notes that the surge in registrations shows confidence in the new framework, but cautions that the rupee’s weakness and global uncertainty could temper future inflows. He says the 10‑year tenure may attract long‑term capital, yet short‑term volatility remains.
Looking ahead, the depository will publish quarterly updates on FPI inflows, and analysts expect the scheme to drive a steady stream of capital over the next two years. The RBI may consider additional regulatory tweaks if inflows exceed ₹1 trillion by year‑end, according to a draft policy brief released by the ministry.