Foreign investors infuse Rs 8,500 crore into Indian equities this week

Mumbai, April 19 (IANS) Foreign investors have once again turned their attention to Indian equities, pumping in around Rs 8,500 crore during the week, as per the latest National Securities Depository Limited (NSDL) data.

The inflows came in during just three trading sessions -- Tuesday, Wednesday, and Thursday -- as stock markets remained closed on Monday and Friday due to public holidays.

This marks a positive turnaround after months of consistent selling by foreign institutional investors (FIIs) in the equity segment. Their return helped the markets end the week on a strong note.

Both the Indian equity indices wrapped up the week on a strong recovery by surging over 4.5 per cent -- driven by positive signals from both domestic and global factors.

The rally was primarily fuelled by optimism surrounding the deferral of tariffs and recent exemptions on select products, raising hopes for potential negotiations that could mitigate the impact on global trade.

A key reason behind this fresh wave of investment is the weakening of the US dollar. As the dollar slips and currencies like the Indian rupee gain strength, global investors find it more attractive to move funds from the US to emerging markets like India.

While these inflows bring temporary relief to the markets, analysts say the coming weeks will be crucial.

“Investors will be watching closely to see whether this positive trend continues or if global factors once again influence foreign investment in Indian stocks,” experts noted.

As per market experts, in the coming week, market participants will closely watch the quarterly earnings of major companies like Infosys, HDFC Bank, and ICICI Bank.

Other key players, including HCL Technologies, Axis Bank, Hindustan Unilever and Maruti Suzuki India are also set to release their financial results.

Meanwhile, the expiry of the April derivatives series could add to market volatility. On the global front, any developments related to tariffs and their potential impact on international markets will also be closely tracked, the experts mentioned.

--IANS

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