By Global Consultants Review Team
Foreign investors have shown renewed interest in India’s stock markets. In just one week, from June 23 to June 27, Foreign Portfolio Investors (FPIs) put in a net amount of ₹13,107 crore. This sharp rise comes after the Reserve Bank of India (RBI) recently cut interest rates, and global financial conditions also became more supportive.
The RBI’s unexpected rate cut earlier this month made it cheaper for businesses to borrow money. This is likely to boost economic activity and company earnings, which makes the stock market more attractive. At the same time, central banks in other countries have signaled a pause in raising interest rates, which is good news for emerging markets like India.
Earlier in June, the mood was quite different. In the first week of the month, FPIs had pulled out around ₹8,700 crore from Indian markets. This sudden change shows how quickly investor sentiment can shift based on key economic signals and global trends.
The fresh flow of foreign funds has provided a lift to Indian equities at a time when global investors are closely watching inflation, interest rate policies, and geopolitical tensions. With India’s strong growth outlook and lower borrowing costs, the country has become a preferred spot for investors looking for better returns.
However, the overall picture for June is still mixed. While this week’s inflow was strong, there were also days in June when FPIs took money out of the market. This shows that investors remain cautious and are closely tracking global and domestic developments.
Going forward, market experts believe that if India’s economic policies continue to support growth and global conditions stay stable, foreign investors may keep investing more in the country. But any sudden changes in global markets or new policy risks could quickly reverse this positive trend.
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