Foreign investors back Indian equities for third straight month

Foreign portfolio investors (FPIs) continued buying Indian shares for the third consecutive month in June, injecting approximately ₹146 billion (~$1.7 billion). Financials were the biggest draw, attracting ₹89 billion, followed by oil & gas. The surge reflects attractive valuations, easing inflation, and RBI rate cuts (policy repo down 50 bps, cash reserve ratio cut 100 bps). Financial sector inflows since March have totaled ₹457 billion, boosting the index by about 18%. While power sector interest dipped and consumer stocks saw modest outflows, confidence remains strong. Market watchers attribute the momentum to improving domestic fundamentals and optimism around a possible U.S.–India trade deal.