Mumbai: Foreign investors have shifted their focus back to Indian equities, investing approximately Rs 8,500 crore during the week, according to the latest data from the National Securities Depository Limited (NSDL).
These inflows occurred over just three trading days—Tuesday, Wednesday, and Thursday—due to public holidays on Monday and Friday. This marks a notable reversal following several months of persistent selling by foreign institutional investors (FIIs) in the equity market, contributing to a robust end of the week for the markets.
Both major Indian equity indices experienced a strong recovery, surging over 4.5%, supported by positive developments in both domestic and global markets. The rally was largely driven by optimism stemming from the postponement of tariffs and recent exemptions on certain products, which raised hopes for negotiations that could alleviate the impact on global trade.
A significant factor contributing to this new influx of investment is the weakening of the US dollar. As the dollar declines and the Indian rupee strengthens, global investors find emerging markets like India increasingly attractive for reallocating their funds.
While these inflows provide temporary relief for the markets, analysts emphasize that the upcoming weeks will be critical. “Investors will be paying close attention to whether this positive trend persists, or if global factors once again affect foreign investment in Indian stocks,” experts indicated.
In the coming week, market participants will be looking forward to the quarterly earnings reports from major companies such as Infosys, HDFC Bank, and ICICI Bank. Other significant players like HCL Technologies, Axis Bank, Hindustan Unilever, and Maruti Suzuki India are also expected to release their financial results.
Additionally, the expiration of the April derivatives series may lead to increased market volatility. On the global stage, any developments regarding tariffs and their potential impact on international markets will also be closely monitored by experts.
