 "Indian markets beat terror and tariff tensions as foreign buyers go on 2-year record spree")
Foreign investors continued their longest buying streak since July 2023 on Monday, driven by hopes of a US trade deal, attractive company valuations, and India’s stability amid global tensions.
Foreign portfolio investors (FPIs) have poured about $4.11 billion into Indian stocks over the last nine sessions, pushing the Nifty 50 index up by 6.6 per cent during this time.
The main reason foreign investors are returning to Indian markets is that the US and China are more exposed to a global trade war, while India is expected to stay the fastest-growing major economy in fiscal year 2026, said G Chokkalingam, founder and head of research at Equinomics Research.
Markets have also brushed off concerns about rising tensions between India and Pakistan after a deadly militant attack in Kashmir last week, which had briefly hurt investor sentiment.
Analysts also said hopes of a US-India trade deal could bring more foreign investment into Indian markets in the near future.
US Treasury Secretary Scott Bessent said on Monday that many key trading partners had made “very good” tariff offers, but a deal with India would likely be one of the first to be signed, possibly as soon as this week.
Foreign interest in Indian stocks is also rising due to attractive large-cap valuations and strong earnings from major companies like Reliance Industries, said Kranthi Bathini, director of equity strategy at Wealthmills Securities.
Impact Shorts
More ShortsThe recent foreign buying comes after $25.3 billion in outflows from Indian markets between October 2024 and March 2025, driven by high valuations, slowing earnings, and global trade worries.
As of Monday’s close, the Nifty was still 7.4 per cent below its record high from September 27, 2024.
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