Foreign investors have continued buying Indian stocks for nine straight days, the longest streak since July 2023. This strong buying is being driven by hopes for a new trade deal between India and the U.S., low stock prices, and India’s strong position compared to other global economies. During this period, foreign portfolio investors (FPIs) invested around $4.11 billion into Indian shares, pushing the Nifty 50 index up by 6.6%.
According to G Chokkalingam, founder of Equinomics Research, FPIs are choosing India because it is less affected by global trade tensions than the U.S. and China. India is also expected to stay the fastest-growing large economy in 2026.
Investors have largely ignored concerns about rising tensions between India and Pakistan following a recent attack in Kashmir, which had briefly worried markets.
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Analysts believe that a possible trade deal between India and the U.S. could bring even more investment soon. U.S. Treasury Secretary Scott Bessent said on Monday that several countries made strong tariff proposals and that a deal with India might be signed as early as this week.
Apart from trade hopes, investors are attracted by the strong performance of big Indian companies like Reliance Industries and cheaper stock prices. Also, global investors are shifting money between China, India, and the U.S., with India becoming a preferred choice.
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This foreign buying comes after large withdrawals from Indian markets between October 2024 and March 2025, when investors pulled out $25.3 billion due to high stock prices, slowing growth, and global uncertainties.
As of Monday’s closing, the Nifty index was still 7.4% below its all-time high from September 27, 2024.
($1 = 85.0940 Indian rupees)
