Foreign inflows cross $2 billion in Indian equities over nine trading sessions

Foreign investors have returned as net buyers in Indian equities, pumping in more than $2 billion over the last nine trading sessions, supported by a strong market rally and improving investor sentiment. The renewed interest comes after a period of volatility driven by global trade concerns and valuation pressures.

Between January 28 and February 6, foreign institutional investors (FIIs) were net buyers in six sessions, while they turned marginal sellers in three sessions, indicating a cautious but positive approach. On February 9, FIIs bought shares worth ₹2,223 crore on a provisional basis, adding momentum to the ongoing rally.

Market gains supported by foreign buying

The sustained foreign inflows coincided with a sharp rise in benchmark indices. Both the Sensex and Nifty gained over 3 per cent during the period, while broader markets outperformed, reflecting increased risk appetite among investors.

Foreign institutional investors increase buying in Indian equity markets
Foreign investors return to Indian equities, driving inflows past $2 billion over nine sessions.

Market participants believe that improved valuations in select sectors and easing concerns around global trade uncertainties have made Indian equities more attractive to overseas investors. Stable macroeconomic indicators and expectations of supportive monetary conditions have also played a role in boosting sentiment.

Analysts urge caution on sustainability

Despite the strong inflows, analysts have cautioned against drawing firm conclusions about the medium-term outlook. They note that foreign investment trends remain sensitive to global cues, including interest rate expectations, geopolitical developments, and movements in global equity markets.

While the recent buying suggests growing confidence in Indian markets, experts say consistency in inflows over a longer period will be key to determining whether this marks a sustained trend or a short-term tactical move.

Outlook remains watchful

For now, the return of foreign investors has provided strong support to Indian equities, helping markets recover from earlier weakness. Investors will closely track upcoming global economic data and policy signals to assess whether the momentum can continue in the coming weeks.

Comments

Popular posts from this blog

Anil Jain at Refex Industries: A Timeline of Business Expansion and Multi-Sector Diversification

Anil Jain Refex: Charting an Entrepreneurial Path Behind a Diversified Industrial Group

Dark Prince to Bangladesh PM: What Tarique Rahman 2.0 Means for India