FIIs pour over $1 billion into Indian stocks
Foreign investors poured more than $1 billion into Indian equities last week, with Goldman Sachs Group Inc. predicting further inflows as a stable currency and
Foreign investors poured more than $1 billion into Indian equities last week, with Goldman Sachs Group Inc. predicting further inflows as a stable currency and improved earnings expectations prompt funds to add to their holdings.Global funds were net buyers of $1.3 billion of Indian equities in the four days through July 9, set to be the biggest weekly purchase since at least June last year, according to data compiled by Bloomberg.
They bought an additional $272 million worth of local shares on Friday, provisional data showed. 132359870“India’s outlook has improved in recent weeks, amid lower commodity prices, stabilized currency, resilient domestic growth, healthy earnings expectations in 2Q, and potential recovery in select domestic pockets,” Goldman Sachs strategists including Amorita Goel wrote in a note dated July 11. “With ultra-light foreign positioning, we see ample room for flows to return.”The return of foreign investors may help sustain a tentative recovery in the benchmark NSE Nifty 50 index, which has rebounded about 8% since hitting a one-year low in April, as easing oil prices and a stable rupee boost the outlook for corporate earnings.
Last week, Citigroup Inc. said Indian equities offer a favorable risk-reward as valuations remain reasonable as earnings estimates have held up.Even though foreign investors have
been net buyers of Indian stocks for four consecutive weeks, they remain net sellers of about $27 billion worth of equities this year, data showed.
The BriefWire