Foreign investors have turned buyers of Indian equities in July after months of heavy selling, raising hopes that one of the biggest pressures on Dalal Street may be easing. FIIs have bought more than $2 billion worth of Indian shares so far this month, after pulling out about $28 billion in the previous phase of selling. The return of foreign money has come at a time when crude oil prices have cooled from recent highs, the rupee has stabilised and global risk appetite has improved.
Analysts, however, are not calling it a clear trend yet. They say the July buying is encouraging, but it still looks like a tactical return rather than a full shift in foreign investor positioning.
