Foreign Investors Rally Behind Indian Equities

In a significant show of confidence, foreign portfolio investors (FPIs) have injected approximately $4.11 billion into Indian stocks over nine consecutive sessions, marking their longest buying spree since July 2023. This surge has propelled the benchmark Nifty 50 index up by 6.6% during the same period.

FPIs invested approximately $4.11 billion in Indian stocks across nine consecutive sessions. (AI image)

Driving Factors Behind the Investment Boom

The optimism stems from promising US trade agreements, attractive valuations of Indian companies, and India's perceived stability amidst global economic uncertainties. Despite geopolitical tensions, India's market resilience and growth prospects have made it a preferred destination for foreign capital.

Expert Insights

G Chokkalingam of Equinomics Research highlights India's lesser susceptibility to global trade conflicts compared to the US and China, forecasting India to remain the fastest-growing major economy in fiscal year 2026.

FPIs in Indian stock markets

Market Resilience and Future Outlook

The Indian stock markets have shown remarkable resilience, shrugging off concerns over India-Pakistan tensions. Analysts anticipate that upcoming U.S.-India trade agreements could further bolster portfolio investments in the near term.

U.S. Treasury Secretary Scott Bessent's remarks about finalizing an agreement with India soon have added to the positive sentiment. Meanwhile, strategic fund movements between China, India, and the United States, along with strong performances from key companies like Reliance Industries, are drawing more foreign investments into Indian equities.