Foreign Investors Reignite Interest in Indian Stocks, Investing $1 Billion in Equities
Foreign investors have renewed their interest in Indian equities, investing over $1 billion in the past week. Goldman Sachs Group Inc. anticipates that this trend will continue, driven by a stable rupee and improving earnings expectations. The influx of foreign capital could further bolster the benchmark NSE Nifty 50 index, which has risen approximately 8% since hitting a one-year low in April.
According to Bloomberg data, overseas investors were net buyers of Indian equities worth $1.3 billion during the four trading sessions ending July 9, marking their largest weekly purchase since at least June of the previous year. Provisional figures indicate an additional $272 million in domestic shares were acquired on Friday. Goldman Sachs strategists noted that India’s outlook has improved due to lower commodity prices, a stabilized currency, and resilient domestic growth.
Foreign Investors Rush to Indian Equities
Foreign portfolio investors (FPIs) have shifted from selling to buying Indian equities in July, investing $2.59 billion (approximately Rs 24,662 crore) in the first ten days of the month. This change in sentiment contrasts sharply with earlier this year when high valuations and global uncertainties led to significant outflows.
In June, foreign inflows were primarily focused on debt, following government and Reserve Bank of India measures that eased access to sovereign bonds. However, July has seen a resurgence in equity investments, which accounted for $1.6 billion, or over 61% of total inflows during this period. The recovery has accelerated, with every trading session from July 1 to July 10 recording positive net inflows, culminating in nearly $978 million on July 9 alone.
Despite this recent buying spree, foreign investors remain net sellers of approximately $27 billion in stocks for the year. The shift in investment patterns indicates a growing confidence in the Indian market, particularly in equities, which have attracted Rs 15,157 crore (about $1.6 billion) in the first ten days of July.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
