Foreign portfolio investors have made a strong return to Indian equities, investing around Rs. 12,921 cr. during the first week of August. The inflow follows an investment of approximately Rs. 20,200 cr. in July and marks a notable turnaround after four consecutive months of heavy selling.
The renewed buying has been supported by expectations of US interest-rate cuts, relatively softer crude prices and improving confidence in India’s economic outlook. Continued FPI participation could provide an important cushion to domestic equities, although geopolitical developments and currency movements remain key risks.
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