Global money is chasing Indian stocks again as bull run extends
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Overseas funds are piling money into Indian stocks, marking a strong return to the $5 trillion market after election-related uncertainty earlier this year triggered a brief hiatus. At $8.5 billion, net foreign purchases this quarter are poised to be the highest since the middle of 2023, data compiled by Bloomberg show. With bets on policy continuity restored after Prime Minister Narendra Modi secured a third term in power and India’s weighting surpassing China’s in some global indexes, the outlook for flows looks promising, especially as the Federal Reserve has started cutting interest rates. The surge in inflows is also a sign of investors’ growing comfort with India’s equity valuation — which is expensive relative to emerging-market peers as well as its own history — as the nation’s benchmark NSE Nifty 50 Index heads for a ninth straight annual gain. “Despite higher valuations, Indian equities remain attractive relative to other markets...