Mumbai
The ongoing rally in Indian equity markets has rekindled interest among foreign investors, with Foreign Portfolio Investors (FPIs) infusing over ₹6,000 crore into domestic equities so far in October. According to data from the National Securities Depository Limited (NSDL), FPIs have invested ₹6,480 crore in equities till October 17, marking a sharp turnaround after three consecutive months of net selling.
In the preceding months, foreign investors had pulled out ₹23,885 crore in September, ₹34,993 crore in August, and ₹17,741 crore in July. Market experts attribute the renewed inflows to the narrowing valuation gap between Indian and global markets, coupled with India’s relative underperformance over the past year, which has now created room for upside potential.
The benchmark indices reflected the upbeat sentiment, with the Nifty surging 424 points, or 1.68 per cent, to close at 25,709.85, and the Sensex climbing 1,451.37 points, or 1.76 per cent, to settle at 83,952.19 — both marking 52-week highs.
Among sectoral indices, Nifty Realty led the rally with a 4.14 per cent rise, followed by strong gains in Nifty Auto (1.90 per cent), Financial Services (2.59 per cent), FMCG (3.00 per cent), Infrastructure (1.70 per cent), and Consumption (2.73 per cent). Analysts noted that the uptrend was broad-based, supported by strength in consumption-driven sectors and steady improvement in realty, healthcare, and banking.
Market strategists said easing inflation, robust macro fundamentals, and resilient corporate earnings have created a favorable medium-term outlook. They added that investor confidence was further strengthened by reduced concerns over asset quality in the financial sector and expectations of healthy volume growth in the ongoing festive quarter.
