FPI

The Reserve Bank of India’s special steps, including a swap window for FCNR-B deposits to attract dollars, offer relief but they don’t address the risks the currency faces at the structural level. Here's what policymakers must pay attention to.

Foreign investors have returned to Indian equities after months of heavy selling, but their sector choices point to selective buying rather than a broad bet on India’s growth story.

Small-caps delivered the biggest gains in Q1FY27, but mutual funds favoured large- and mid-caps, FPIs cut holdings across segments, and retail investors trimmed exposure to much of the broader market.

Overseas investors snapped a four-month selling spree in July by pouring ₹9,613 crore into Indian equities. Experts view the shift as tactical repositioning rather than a structural return, even as strong domestic inflows absorb global volatility.

June's biggest foreign investor outflow from the sector since August 2023 appears largely tactical, but analysts warn earnings downgrades are likely to continue as cost pressures persist and commodity markets weaken.

Recent net cash purchases since the West Asia ceasefire were driven by the closure of reverse arbitrage positions rather than by a change in sentiment.