- MUMBAI — 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.
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- 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.
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- 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.
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- 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.
Also read: Indian stock markets rally over 4.5 pc in holiday-shortened week
- 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.
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- 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.
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- “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.
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- 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.
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- Other key players, including HCL Technologies, Axis Bank,
Hindustan Unilever and Maruti Suzuki India are also set to release their
financial results.
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- 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.