Foreign investors return to India, equities lead revival
Foreign portfolio investors have shifted their strategy, moving from net sellers to net buyers in the Indian market during July. Equities have become the primary focus, signaling a recovery in investor sentiment toward India's financial stability.
Why it matters
The influx of foreign capital is a critical indicator of India's economic health and global investor confidence in emerging markets.
MUMBAI: Foreign investors who rediscovered their appetite for Indian debt in June have now widened their interest to equities as well in July. After months of persistent selling, foreign portfolio investors (FPIs) have turned net buyers in July, investing $2.59 billion (Rs 24,662 crore) in the first 10 days of the month.The reversal, triggered by a steady rupee and a shift in investment trend from semiconductors, marks a sharp change in sentiment from earlier this year, when concerns over valuations, global uncertainty and shifting capital flows prompted sustained withdrawals.Unlike June, when foreign inflows were driven largely by debt after the govt and RBI eased access to sovereign bonds and removed tax frictions, July has seen equities regain favour as well.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in