After a phase of heavy selling, foreign portfolio investors have finally made a strong comeback to the Indian share market. In just 10 trading sessions, they have pumped a massive $10 billion, which equals roughly 84,000 crore rupees, into our domestic equities. This rapid buying spree has helped the market rebound sharply, taking everyone by pleasant surprise.
Market experts believe this fresh inflow is happening because of several positive factors. For instance, the Sensex and Nifty indices recently saw an uptick of 0.13% and 0.23% respectively in a single session. Furthermore, specific sectors are performing exceptionally well. The public sector banking index surged by 8% recently, with top bank stocks jumping over 13.3%.
Falling crude oil prices and a stable rupee are also making India a very attractive destination for overseas capital. Financial services, information technology, and automobile sectors are witnessing the maximum buying interest from these foreign funds. Domestic institutional investors were already supporting the market, but this sudden return of foreign money has further boosted sentiment on Dalal Street.
This shift highlights that global investors still deeply trust the long term growth story of India. They are happily reallocating their funds to our markets, looking for better returns. In the coming days, retail traders will closely monitor these foreign flows to plan future trading strategies and book solid market profits.