Foreign investment flows into Indian financial markets are accelerating, driven by a combination of record sovereign debt demand and growing confidence in equity valuations.
The shift marks a notable change in sentiment toward the world's fastest-growing major economy, with global allocators increasingly viewing India as a primary beneficiary of emerging-market rotation.
2 billion into Indian government bonds, representing the strongest monthly inflow in 15 months.
The momentum is evident across asset classes.
In June, foreign investors directed a record $5.2 billion into Indian government bonds, representing the strongest monthly inflow in 15 months.
This surge in sovereign debt demand has provided a stabilizing cushion for the broader market, reducing volatility and supporting currency stability amid global uncertainty.
Equity managers are echoing this optimism.