Foreign Investors Inject Rs 8,500 Crore into Indian Equities This Week
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Synopsis
Foreign investors have redirected their focus towards Indian equities, infusing Rs 8,500 crore over three trading sessions this week, marking a significant turnaround in market sentiment as per NSDL data.
Key Takeaways
- Foreign investors infused Rs 8,500 crore into Indian equities.
- Investment occurred over three trading days.
- Market indices surged over 4.5% by week’s end.
- Optimism around tariff exemptions fueled the rally.
- Upcoming earnings reports will be closely watched.
Mumbai, April 19 (NationPress) Foreign investors have shifted their focus back to Indian equities, injecting approximately Rs 8,500 crore this week, according to recent data from the National Securities Depository Limited (NSDL).
This influx occurred over just three trading sessions—Tuesday, Wednesday, and Thursday—since the stock markets were closed on Monday and Friday due to public holidays.
This development signifies a positive shift after several months characterized by persistent selling from foreign institutional investors (FIIs) in the equity market. Their re-entry contributed to a robust market performance by week’s end.
Both major Indian equity indices concluded the week with a remarkable recovery, climbing over 4.5 percent, spurred by encouraging signals from both local and international fronts.
The surge was mainly driven by optimism regarding the postponement of tariffs and new exemptions on select products, enhancing expectations for negotiations that could lessen the repercussions on global trade.
A significant factor behind this renewed wave of investments is the depreciation of the US dollar. As the dollar falls and currencies such as the Indian rupee strengthen, it becomes increasingly appealing for global investors to redirect their funds from the US to emerging markets like India.
While these inflows provide temporary relief to the markets, analysts caution that the upcoming weeks will be critical.
“Market participants will closely monitor whether this positive trend persists or if global factors once again sway foreign investments in Indian shares,” experts remarked.
In the week ahead, investors will keep a close eye on the quarterly earnings reports from prominent companies like Infosys, HDFC Bank, and ICICI Bank.
Other significant players, including HCL Technologies, Axis Bank, Hindustan Unilever, and Maruti Suzuki India, are also scheduled to announce their financial results.
Additionally, the expiration of the April derivatives series may lead to increased market volatility. On the international stage, any updates regarding tariffs and their potential effects on global markets will also be closely monitored, the experts added.
