Daijiworld Media Network - Mumbai

Mumbai, Apr 19: After months of outflows, foreign investors have made a strong comeback to Indian equity markets, injecting approximately Rs 8,500 crore this week, according to data from the National Securities Depository Limited (NSDL).

This inflow occurred over just three trading sessions — Tuesday to Thursday — with markets shut on Monday and Friday due to public holidays. The renewed interest from foreign institutional investors (FIIs) comes as a welcome shift after prolonged selling pressure.

The Indian stock market responded with a sharp rebound, with benchmark indices soaring over 4.5% for the week. This surge was bolstered by encouraging global cues, including tariff delays and product-specific exemptions that signaled potential easing of trade tensions.

One of the major drivers behind the FII return is the weakening US dollar. A softer dollar, combined with the strengthening Indian rupee, has made emerging markets like India more appealing to global investors looking for better returns.

While the inflows have lifted market sentiment, analysts caution that the momentum will be tested in the coming days. Investors are expected to track quarterly results from heavyweight firms like Infosys, HDFC Bank, and ICICI Bank — reports that could significantly influence trading behavior.

Other major names on the earnings docket include HCL Technologies, Axis Bank, Hindustan Unilever, and Maruti Suzuki. Meanwhile, the expiry of the April derivatives series could introduce further volatility.

Globally, any new developments around trade policies and tariffs will also play a crucial role in shaping investor confidence and capital movement, experts added.