Global funds revisit Indian stocks as risks recede

Global fund managers are reconsidering exits from Indian stocks as falling oil prices and rupee stabilization reduce key concerns. Daily foreign selling has slowed while inflows into India-focused ETFs have turned positive. Analysts note that attractive valuations could support a market rerating if earnings growth holds.

Global fund managers are reconsidering their exit from Indian stocks. Falling oil prices and rupee stabilization have eased investment concerns.

Daily foreign selling has slowed. Inflows into India-focused ETFs have turned positive.

Some investors view India as oversold with attractive valuations. Sustained earnings growth remains crucial for a long-term market rerating. Analysts predict a mid-teen acceleration in growth.

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BSE trading floor during Sensex and Nifty rally on US-Iran ceasefire relief, with cheering traders amid rising indices and cautious expressions over fragile peace.
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Indian markets rally on US-Iran ceasefire relief but caution persists

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Indian equity benchmarks Sensex and Nifty posted their strongest single-day gains in years on Wednesday, driven by a US-Iran ceasefire that eased oil prices and inflation fears. The market capitalization of BSE-listed companies rose by ₹16.1 lakh crore. However, Asian stocks turned cautious as the ceasefire showed signs of fragility.

Overseas investors cut back sharply on selling Indian stocks during June as improving global conditions lifted sentiment. Outflows approached their lowest levels since December 2025. Domestic buyers continued to provide steady support to the market.

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Foreign portfolio investors are directing record amounts into India's government securities this month following recent policy adjustments.

Indian stock markets have recorded flat performance in recent periods. A study by Edelweiss Mutual Fund indicates these phases have historically led to stronger returns.

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Dalal Street saw a notable decline with the Indian rupee hitting a record low for the second consecutive day. Key equity indices posted their largest single-day drop in six weeks.

Retail investors put ₹38,440 crore into equity mutual funds last month, a modest decline from March levels. The dip occurred amid uncertainty over oil prices and lower SIP collections.

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Indian stock markets rose more than 1 percent on Monday as the Nifty index crossed back above 24,000. The gains followed positive global signals including hopes for a US-Iran deal and lower oil prices.

 

 

 

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