Foreign investors won Indian financial actions during the second half of April, which recorded the third most important monthly influx in this sector, according to data published Wednesday by the National Securities Depository.
The FPIs bought for 184.09 billion rupees ($ 2.18 billion) of share of financial companies in April, contributing to the increase of 4.1 % of the NIFTY Financial Services index.
The $ 2.71 billion entries in the second half of April were the highest ever recorded in two weeks.
In April, foreign investors bought Indian shares for the first time in 2025, progressing the NIFTY 50 reference index by 3.5 %.
“The overthrow of the trend in the exit of foreign capital is explained by the appeasement of global trade tensions, the expectations of a trade agreement between the United States and India and attractive valuations,” said Bajaj Brooking in his monthly market prospects.
This wave of purchases could continue if the economic prospects of India remain solid, he added.
The United States has suspended its reciprocal customs duties on April 9 and indicated during the month that a bilateral trade agreement with India would soon be announced.
-The better than expected results of the main Indian private banks, HDFC Bank and Icici Bank, have also attracted capital in the sector, according to two analysts.
Indian actions in the consumer and telecommunications sectors also benefited from foreign purchases in April, while most of the other major sectors have experienced an exodus.
The shares in the information technology sector have recorded capital outlets up to $ 1.80 billion, demand has been affected by concerns about economic growth in the United States, the main market for IT companies.
“Political uncertainty linked to American customs duties is likely to harm the growth of the information technology sector during the year 2026,” said Ashwin Mehta’s analysts of Ambit Capital.
“The decline in American GDP growth and the slowdown in growth in the United Kingdom and in the European Union could harm the hopes for improving margins for the year 2025-2028,” said Mehta.
($ 1 = 84.6000 Indian rupees)
