Global funds fall in love with Indian stocks again, buy $1 billion in equities
Foreign investors have returned to the Indian stock market, purchasing over $1 billion in equities last week. Analysts suggest that stable currency and improved corporate earnings expectations are driving this renewed interest.
Why it matters
This indicates a potential shift in global investor sentiment toward emerging markets, specifically India, following a period of significant outflows.
Foreign investors seem to be turning bullish on Indian equities again with more than $1 billion invested in the last week. Goldman Sachs Group Inc. has projected that these overseas inflows could strengthen further as a stable rupee and improving earnings expectations are encouraging global funds to increase their exposure to Indian equities.The renewed interest from foreign investors could help extend the recovery in the benchmark NSE Nifty 50 index, which has climbed about 8% since touching a one-year low in April. Softer oil prices and the rupee's stability have improved expectations for corporate earnings.According to data compiled by Bloomberg, overseas investors were net purchasers of Indian equities worth $1.3 billion during the four trading sessions through July 9, putting them on track for their largest weekly buying since at least June last year.
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