Foreign investors bought a net $1.3 billion of Indian equities during the four days through July 9, the largest weekly purchase since at least June last year, according to Bloomberg data. They added another $272 million on July 10, extending a four-week run of net foreign buying. Goldman Sachs strategists expect further inflows, citing lower commodity prices, a stabilized rupee, resilient domestic growth, and healthy second-quarter earnings expectations. Foreign positioning remains exceptionally light, suggesting global funds have substantial room to rebuild Indian equity holdings. Citigroup said the market offers favorable risk-reward conditions with reasonable valuations and steady earnings projections, though foreign funds remain net sellers of roughly $27 billion of Indian equities this year.
Goldman Sachs Group IncGoldman Sachs strategists cited as expecting further inflows, which could boost its investment banking and trading revenues.