Foreign funds are showing signs of a return to Indian equities as recent declines in oil prices and the dollar bring some reprieve for emerging markets.

Overseas investors have bought a net $1 billion of local stocks in the first three days of this week, according to the latest available exchange data compiled by Bloomberg. That puts them on course for the first weekly purchases since April. They dumped almost $30 billion of shares in the year through last Friday.

A return of foreign funds could boost Indian stocks, which have been resilient this year even as their EM peers suffered the worst first-half performance in 24 years amid concerns on US interest-rate hikes and China’s pandemic lockdowns. India’s benchmark S&P BSE Sensex Index has climbed almost 8% over the past month, the best performance in Asia.

Source:
courtesy of BLOOMBERG

by Ashutosh Joshi

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