• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Are foreign investors returning to Indian equities? Here’s what experts say

by March 25, 2025
by March 25, 2025

Foreign institutional investors (FIIs) are returning to Dalal Street as net buyers, ending their prolonged selling streak and driving a strong rally in the stock market.

Global funds have emerged as net buyers of Indian equities on a weekly basis for the first time since December, as optimism returns to the market.

Data compiled by Bloomberg shows that foreign investors purchased a net $515 million worth of stocks in the week ending March 21.

This influx, driven in part by passive flows linked to FTSE’s All World Index rebalancing, helped the NSE Nifty 50 Index erase its year-to-date losses.

While the inflows remain modest compared to the $15 billion in outflows seen since January, the shift in sentiment marks a positive turnaround.

The Nifty 50 is poised to record its first monthly gain in six months, supported by the Reserve Bank of India’s liquidity measures and more attractive stock valuations after a steep selloff.

However, despite the recent gains, the index remains about 10% below its September peak.

Single-day inflows hit highest in four months

On Friday alone, foreign investors injected Rs 7,470 crore ($897 million) into Indian equities—the highest single-day inflow in four months.

Analysts attribute the renewed interest to improving macroeconomic indicators, fair stock valuations, and expectations of a tempered US trade tariff policy.

“Improving macros of the Indian economy and fair valuations have turned FIIs from sellers to buyers,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investment Services.

He noted that the influx of funds has triggered a wave of short covering, further propelling market gains.

Global and domestic factors at play

Market experts believe the shift in foreign investor sentiment is driven by a combination of global and domestic factors.

One key catalyst is the expectation that the next round of US tariffs, set to be announced on April 2, will be less aggressive than initially feared.

“The next round of US tariffs could be more measured than previously suggested. This optimism is reflected in the buoyancy of US index futures,” said Devarsh Vakil, Head of Prime Research at HDFC Securities.

Additionally, the US Federal Reserve’s slower pace of quantitative tightening has eased global liquidity concerns, making emerging markets like India more attractive.

A weakening dollar and the resultant foreign inflows have also strengthened the rupee, which recently touched 85.97 against the US dollar, its strongest level in over two months.

Nifty 50 nearing 24,000 amid shifting global capital flows

The Nifty 50 has shown strong performance over the last ten trading sessions, nearing the 24,000 mark.

Market expert Ajay Bagga believes this momentum could be sustained as capital flows continue to shift away from the US

“The big change is that FIIs are moving towards inflows. Globally, the rotation has started on the margin,” Bagga told the Economic Times.

“Last year, if 80% of all equity investments were going into the US markets, it has now dropped to about 70%. Sentiment towards the US economy and policy-making has been eroded, though behaviour has yet to fully reflect this.”

As the global investment landscape diversifies, India is emerging as a beneficiary of shifting capital flows.

While the road to sustained foreign investor interest remains uncertain, the recent inflows signal renewed confidence in Indian equities.

The post Are foreign investors returning to Indian equities? Here’s what experts say appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Glencore-backed Nanshan Aluminum’s stock dips after Hong Kong IPO
next post
How are Mullen Automotive, Polestar, Faraday Future stocks doing?

Related Posts

Asian markets open: most futures lower; Sensex to...

June 6, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Circle stock price prediction: is CRCL a good...

June 6, 2025

Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and...

June 6, 2025

European markets open: Stoxx 600 flat ahead of...

June 6, 2025

Musk, Trump dial back feud as White House...

June 6, 2025

XRP slips 2.5% to $2.14 as Trump-Musk clash...

June 6, 2025

China’s May export growth seen slowing to 5.0%...

June 6, 2025

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo,...

June 6, 2025

Citi downgrades CEG stock despite Constellation Energy’s big...

June 5, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
  • Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025
  • Circle stock price prediction: is CRCL a good buy today?

    June 6, 2025
  • Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and Republican unity

    June 6, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,371)
  • Editor's Pick (143)
  • Investing (165)
  • Stock (882)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Asia market outlook for May 8: Global...

May 8, 2025

Top FTSE 100 shares to watch: AAL,...

February 28, 2025

S&P 500 Index: Time to sell the...

May 2, 2025