Foreign investors are accelerating their purchases of Indian equities on hopes of continued recovery ahead of the upcoming earnings season, while also benefiting from lower valuations following a recent selloff.
Global funds purchased $2.6 billion of Indian shares on a net basis in the week through March 27, their biggest inflow since early December.
The benchmark NSE Nifty 50 Index is still about 10% off its previous peak levels seen in September, though it advanced in March for its first gain in the past six months.
Foreign investors have been buying shares in India, betting on signs of an economic rebound and expecting a recovery in the equity market.