Indian mutual fund holdings in overseas equity securities increased by 37.5 per cent year-on-year to approximately '93,602 crore by March-end, according to RBI data. This growth is attributed to mark-to-market gains from a global market rally and heightened investor interest, with the US remaining the primary destination for these investments.
Indian benchmark equity indices, Sensex and Nifty, rebounded in early trade, driven by a recovery in world markets due to easing US Treasury yields and fresh foreign fund inflows, halting a multi-day losing streak. Track Sensex, Nifty on August 20.
Foreign Portfolio Investors (FPIs) withdrew Rs 49,340 crore (USD 5.16 billion) from Indian equities in June, driven by global risk aversion, a preference for developed markets, soaring US bond yields, and stretched domestic valuations, bringing total withdrawals to Rs 2.7 lakh crore so far in 2026.
Adani Airport Holdings (AAHL) has announced it will raise 9,825 crore through a primary equity infusion from a consortium of global investors, including Alpha Wave Global, Premji Invest, Temasek, and funds managed by BlackRock, who will collectively acquire a 5.54 per cent stake.
Shares will be allocated across different institutional investors, including domestic mutual funds, other domestic institutions and FPIs.
Indian benchmark equity indices, Sensex and Nifty, rebounded in early trade after a three-day slide, driven by strong buying in blue-chip bank stocks and a firm trend in global markets, supported by easing US bond yields and record foreign-currency deposit inflows.
Indian stock market benchmark indices Sensex and Nifty closed nearly one per cent higher, extending their winning streak for a second day. This rally was driven by softening crude oil prices, positive geopolitical developments, and significant buying in blue-chip IT stocks, despite a broader global tech sell-off.
Foreign Portfolio Investors (FPIs) have withdrawn over Rs 62,853 crore from Indian equities in the first fortnight of June, bringing the total outflows for 2026 to Rs 2.87 lakh crore, surpassing the entire 2025 figure, driven by geopolitical tensions, global economic growth concerns, and a weakening rupee.
Overseas travel spending by Indians, including holiday trips, decreased by $212.43 million to $1.09 billion in March compared to February, according to the Reserve Bank of India's latest data.
Inflows into non-resident Indian (NRI) deposit schemes decreased by 23.24 per cent to $2.78 billion during the first quarter of FY27, down from $3.61 billion in the previous year, according to Reserve Bank of India (RBI) data.
Indian companies, including NBFCs, filed proposals to raise $7.696 billion through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) in July 2026, a significant increase from $6.09 billion in June.
India's outward foreign direct investment (FDI) plummeted by 47.9 per cent year-on-year to $3 billion in June 2026, according to the Reserve Bank of India (RBI), with declines across equity, debt, and guarantee commitments.
Indian benchmark indices Sensex and Nifty closed lower, with the Nifty recording its fourth consecutive day of decline, primarily due to elevated oil prices and ongoing geopolitical tensions between the US and Iran, which dampened investor sentiment.
Foreign portfolio investors (FPIs) significantly increased their buying in Indian equities during the first half of August, with financial services attracting the largest inflows, reversing previous outflows. The IT sector also continued to see strong interest from overseas investors, driven by a reassessment of valuations and the role of Indian IT firms in AI deployment.
...exceeding their 49,340 crore equity selloff.
Finance Minister Nirmala Sitharaman on Sunday said individual persons residing outside India (PROI) will be permitted equity investments in listed Indian companies through a portfolio investment scheme.
'Banking is the only sector that can see double-digit growth in FY27.'
The report notes that equities had faced pressure from elevated valuation premiums, subdued nominal gross domestic product (GDP) and earnings growth, sustained foreign portfolio investor (FPI) selling, artificial intelligence (AI) infrastructure euphoria, and external shocks including US tariffs and a spike in crude oil prices due to geopolitical tensions in West Asia. However, several of these factors are now reversing.
As the rupee weakens, wealthy families are accelerating investments in global assets.
Indian benchmark indices, Sensex and Nifty, experienced a significant downturn as escalating tensions in West Asia led to a sharp surge in crude oil prices, coupled with fresh foreign fund outflows and a weakening rupee.
International mutual fund schemes have seen a significant resurgence in investor interest, attracting approximately Rs 7,600 crore in net inflows over the past year, a stark reversal from previous outflows, driven by their strong outperformance against domestic markets and limited AI-linked investment opportunities in India.
India is projected to attract between $80 and $85 billion through the Reserve Bank of India's (RBI) concessional swap facility, designed to boost foreign currency inflows, according to an SBI research report.
Outward remittances under the Reserve Bank of India's Liberalised Remittance Scheme (LRS) saw a 7.85 per cent year-on-year contraction in April 2026, primarily driven by reduced international travel spending due to global uncertainty stemming from the US-Iran conflict.
Indian benchmark stock indices Sensex and Nifty rebounded nearly 1 per cent, snapping a three-day decline, driven by rallies in Reliance Industries and Sun Pharma, alongside positive global market trends and easing geopolitical tensions.
Foreign Portfolio Investors (FPIs) have withdrawn nearly Rs 43,000 crore from Indian equities in the first week of June, contributing to a total outflow of Rs 2.67 lakh crore in 2026, driven by a global shift towards technology and AI-linked opportunities and persistent rupee depreciation.
State-owned Bank of Baroda (BoB) reported a 72 per cent year-on-year (Y-o-Y) drop in net profit to 1,278 crore for Q1FY27 due to a $600 million out-of-court settlement related to NMC Health Plc. In contrast, Bank of India (BoI) saw its net profit rise by 36.23 per cent Y-o-Y to 3,068 crore for the same quarter, driven by healthy loan growth and improved asset quality.
The Indian government is accelerating its sale of minority stakes in state-owned companies, including a significant offer for sale (OFS) in Life Insurance Corporation of India (LIC) expected "very soon," to meet its 80,000 crore mobilisation target and reduce its holdings to 75 per cent in most listed PSUs by year-end.
Tata Motors is set to acquire Italy's Iveco Group, a strategic move aimed at propelling the Indian automaker into the top four global commercial vehicle (CV) manufacturers, with projected annual revenues of $35 billion-$40 billion within five years.
Investors must account for currency depreciation in their financial plans and use instruments that can cushion the erosion in purchasing power.
Foreign Portfolio Investors (FPIs) withdrew nearly Rs 33,000 crore from Indian equities in May, bringing the total outflow for 2026 to Rs 2.25 lakh crore, driven by weak earnings growth, rupee depreciation, and more attractive opportunities in other global markets.
The Reserve Bank of India's Financial Stability Report indicates that the interim peace deal between the US and Iran has favourably shifted the balance of risks, reducing headwinds from the West Asia conflict. However, it cautions that exchange rate volatility could increase if crude oil prices spike due to delayed normalisation of supply chain disruptions.
Indian benchmark indices Sensex and Nifty closed marginally lower due to profit-taking, following the Reserve Bank of India's decision to keep the repo rate unchanged while lowering its growth expectations for the current fiscal year and forecasting higher inflation.
India's finance ministry anticipates inflation will remain relatively contained in the coming months, supported by a correction in crude oil prices and softening input costs following the cessation of the West Asia conflict, despite earlier spikes in wholesale and retail inflation.
'When I look at India's relative valuations, these are by far the lowest I have seen in my 35-year career.' 'The relative 12-month trailing performance is among the weakest I have seen, and foreign investor positioning is at a 16-17 year low.'
India's outward foreign direct investment (FDI) saw a significant increase of 27.5 per cent, reaching $7.06 billion in March, primarily driven by a sharp rise in guarantees for overseas units, according to the Reserve Bank of India.
Why would a country that requires close to $90 billion in net foreign capital annually to create jobs, build productive capacity, and sustain rapid growth permit $30 billion of capital to flow abroad, thereby contributing to pressure on the rupee? asks Debashis Basu.
India's mergers and acquisitions (M&A) market is projected to maintain an annual run-rate of approximately $200 billion, evenly split between domestic, inbound, and outbound transactions, despite global geopolitical turbulence, according to Rajesh Singhi, global co-head, M&A Advisory, Standard Chartered Bank.
Investors should do thorough due diligence when selecting a platform.
'The real money in India over the coming period is likely to be made in small-cap stocks rather than in the large-cap benchmark names.'
The Reserve Bank of India (RBI) and the central government have introduced a package of measures, including tax exemptions for FPIs on government securities and a concessional foreign-exchange swap facility, aiming to attract up to $50 billion in foreign capital. This initiative is designed to strengthen India's balance of payments and potentially cover the projected BoP gap for FY27.
