Foreign investors return to Indian markets in October
Foreign investors shifted their strategy in Indian markets this month after reducing their selling activity that began in early October. Data from NSDL shows institutional investors sold only 3,363 crore rupees through exchanges by Oct. 25, while primary market investments reached 10,692 crore rupees in the same period.
Market watchers point to several factors that could sustain buying interest from overseas firms. The gap between Indian stock valuations and those of other markets has narrowed, corporate earnings are rising, and strong festival-season sales signal economic strength. Trade negotiations between India and the United States may also boost confidence.
On Thursday, foreign funds sold 1,166 crore rupees after five straight sessions of purchases, while domestic institutions bought 3,893 crore rupees. Analysts expect foreign investors will continue to profit from initial public offerings, though they may sell at higher prices and limit extended rallies.
