India stock markets: Why are foreigners back in buying mode?
Live MintForeigners are returning to Indian stocks after dumping them in the first half as they look for higher returns amid expectations that major central banks will slow their hiking cycles as price pressures ease. Since mid-June, India's major stock index has surged 11.5%, which compares with the MSCI World index's gain of 6%, and MSCI Emerging Market index's decline of 2.8%. "Foreigners clearly underestimated how India would tackle the pandemic and the economic recovery post-pandemic has been robust in an uncertain global environment," said Neha Pathak, investment specialist for India Equities at BNP Paribas Asset Management. Aishvarya Dadheech, fund manager at Ambit Asset Management, said Indian equities would be bolstered by a strong earnings momentum and moderating inflation. Domestic and foreign institutional investments in Indian markets Morgan Stanley expects Asian economies such as India and Indonesia, which are focused on domestic demand, to be more resilient than those dependent on exports, as slowing demand from developed countries affects shipments.