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Below the Quote on FPI Progress in September Trend inputs - Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India

In line with an expected move, the US Federal Reserve, this week, made the first interest rate cut in the last four years, by a larger-than-anticipated margin of 50 bps. The FPI fraternity has been conscious of this move and reacted passively. The Indian markets reflected their resilience on a positive note based on the strong fundamentals and robust economic performance at the expected GDP growth.
September has witnessed the second highest inflows in 2024 so far, the last one being in March 2024. Data from NSDL shows that during the current month till September 17, FPIs pumped net USD 3,682 mn Indian equities, higher than the net monthly flows in six out of eight previous months in the current calendar year.
Despite global uncertainties, the primary factors, that make emerging markets like India a sweet spot, are balanced fiscal deficits, rate cut impacts on the Indian currency, strong valuations, and RBI’s approach to keep inflation under control without a rate cut. 
To add, the IPOs announced this year attracted a large chunk of foreign funds making the Indian capital market buoyant and a lucrative place to shift their positions from other riskier countries.
All eyes on RBI now on whether it should follow suit by making a cut in the repo rate in October or wait till December. There is a strong case to marginally cut rates to manage food inflation and diluted interest from household savings which impact the retail lending business of banks. India’s monetary policy has been more conservative despite the Fed's action so far.
The Indian government is vigilant enough to the external macro factors and leaving no stone unturned to shift its policies to make the capital market most conducive for foreign infusions.

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