In a strong show of confidence, foreign portfolio investors (FPIs) have invested $4.11 billion in Indian equities over the past nine consecutive sessions—the longest buying streak since July 2023. This surge in foreign capital has contributed to a 6.6% rally in the Nifty 50 index, reflecting renewed investor optimism.
Despite recent India-Pakistan tensions following a terror attack in Kashmir, the Indian stock market remained resilient, underscoring its attractiveness amid global uncertainties.
Why Global Investors Are Bullish on India
Experts attribute this renewed interest in Indian stocks to several factors:
- Attractive large-cap valuations
- Robust corporate performance (led by Reliance Industries)
- Relative geopolitical stability
- Strategic capital reallocation from China and the U.S.
- Anticipated U.S.-India trade agreements
“India is perceived as less vulnerable to global trade conflicts, particularly compared to the U.S. and China,” said G Chokkalingam, founder of Equinomics Research, in an interview with Reuters. He added that India is expected to remain the fastest-growing major economy in FY 2026.
U.S.-India Trade Deal on the Horizon
Adding to the optimism, U.S. Treasury Secretary Scott Bessent indicated that a trade agreement between the U.S. and India could be finalized within the week. Analysts believe such a deal could further boost foreign investments in the Indian markets.
Recovery After Heavy Outflows
This positive trend comes after FPIs withdrew nearly $25.3 billion between October 2024 and March 2025, largely due to high valuations, falling earnings, and global economic concerns. However, the current rebound highlights renewed trust in India’s economic trajectory.
As of Monday, the Nifty index remains 7.4% below its all-time high recorded on September 27, 2024, suggesting there’s still room for upward momentum.
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