Foreign portfolio investors (FPIs) continued to pour money into Indian equities for a third straight month in June, snapping earlier outflows and signaling sustained global confidence in the country’s long-term prospects. They invested ₹145.9 billion—about $1.7 billion overall—allocating a majority (₹89.5 billion) to financial stocks after a surprise 50 bp rate cut and a 100 bp reduction in the cash reserve ratio by the Reserve Bank of India.

The rally was further supported by easing inflation, attractive valuations, and hopes for a favourable India‑U.S. trade deal. Oil & gas stocks also drew inflows amid stabilising crude prices following the ceasefire in the Middle East. . However, the power and consumer sectors saw outflows—₹63 billion and ₹39.9 billion respectively—as subdued demand due to early monsoons weighed on investor sentiment.

Analysts expect June‑quarter earnings to be a key catalyst, particularly if consumer demand begins to rebound—a positive signal for continued foreign investment.

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