Foreign Investors Boost Indian Equities

Foreign portfolio investors (FPIs) have maintained their confidence in Indian equities, marking the fourth consecutive month of net purchases with an influx of Rs 3,839 crore in July alone, as per NSDL data. This trend builds on the momentum from April to June, where investments totaled Rs 4,223 crore, Rs 19,860 crore, and Rs 14,590 crore respectively.

Market Performance and Global Context

Despite the BSE benchmark Sensex being approximately 3,500 points shy of its peak, Indian markets have demonstrated resilience, outperforming global counterparts amidst international market volatility. VK Vijayakumar of Geojit Financial Services highlights a shift from negative FPI inflows in the first quarter to positive trends in the subsequent months.

Strategic Shifts and Future Outlook

Vijayakumar points out the potential for FPIs to redirect investments to more affordable markets as a short-term strategy, reflecting on the Indian market's underperformance against the MSCI EM index in H1 2025. Nonetheless, the benchmarks have shown robust growth, with gains of around 9-10% in 2024 following a 16-17% rise in 2023.