Stock exchange data showed net foreign portfolio inflows into India hit a 15-month high of $2.42 billion in February.
Foreign investors are returning to Indian stock markets, attracted by the odds Prime Minister Narendra Modi’s party will win coming elections and by hopes for deeper economic reforms and more monetary policy easing.
Stock exchange data showed net foreign portfolio inflows into India hit a 15-month high of $2.42 billion in February, a big swing from 2018’s net outflows of $4.4 billion, the largest since the 2008 global financial crisis.
Inflows have been sustained this month, with the market riding a wave of patriotism following India’s military strike on Pakistan in retaliation for a suicide attack in the disputed Kashmir region.
Most analysts say Modi’s action following the Kashmir attack improve his chances in the massive, seven-stage vote that will begin on April 11.
“There is a feeling that this will help the incumbent party earn brownie points as they head into elections,” said Hitesh Agrawal, an executive vice-president and head of retail research at Religare Broking.
Also helping the market has been Modi’s populist budget unveiled last month and a Feb. 7 rate cut by the central bank.
The Nifty has risen over 11 percent since a trough on Oct. 26. It rose 3.2 percent in 2018.
(Business Television India (BTVI) is now on WhatsApp. To subscribe to the service, click on www.btvi.in/WhatsApp)