Foreign investors are starting to go back to Indian shares after a large exodus, attracted by $ 5.5 billion in large ticket blocks in May and lifting the hope for a revival at the country’s stock market.
According to bankers, the block transactions were well purchased by overseas investors. They marked the highest monthly total in almost a year and a huge leap of just $ 220 million in April.
“We were actually interested in a fairly diverse series of investors who were missing in action for the past six months,” said ABHINAV BHARTI, head of JPMorgan’s India Equity Capital Market Business.
“They were leaving India, said that India is just too expensive, we don’t want to buy anything now. I think we can see them coming back.”
Block transactions often precede a recovery in IPOs and the robust offers from May come in the midst of a strong performance for Indian shares.
The Nifty 50 index has risen 6 percent since the beginning of April, when US President Donald Trump announced his radical rates, which were then paused for 90 days, with India rising as a safe haven of investors because of better than established tasks.
Since then, foreigners have bought about $ 3 billion in Indian shares and can be combined, according to data.
That is after they have taken almost $ 29 billion from Indian shares between October and March, which followed record highs for the Benchmark Indices of the country in September.
Gary Tan, a portfolio manager at Allspring Global Investments in Singapore, said that the recent inflow into India reflects a revival of interest in emerging market shares.
“We have selectively added to India to pullbacks but remain underweight,” Tan said, referring to a high rating in some sectors. Banks, telecommunications and diversified conglomerates were his most favorite sectors, he added.
The $ 5.5 billion in Blokhandel in May, according to LSEG data, included the sale of a British -American tobacco $ 1.51 billion in ITC, according to a term cloth that was seen by Reuters.
Co-founder of Indigo Rakesh Gangwal has also beaten 5.7 percent in the cheap courier via a block deal with a value of around $ 1.36 billion, while Singtel sold $ 1.5 billion to Bharti Airtel shares. Both the ITC and the Indigo transactions were increased in size after a strong demand from investors, bankers said.
It was the busiest May ever registered for Block Trades in the country, the data showed.
“We see high-quality global long-only accounts coming in with conviction,” says Sunil Khaitan, a director of Goldman Sachs in India.
“Some are still waiting for levels to normalize, but 90 percent to 95 percent of foreign liquidity that returns to the market, is from deeply embedded India investors, those who understand the market and have waited for the right window to arise again.”
The Head of Citigroup of India ECM Arvind Vashistha said that the better economic performance, tax reductions and interest rates of the country had helped improve the sentiment against the stock markets of India.
“The economy is in good condition, ratings have become more reasonable, which encourages a healthy market activity. Investors tell us that this is the companies that we find interesting and if there is a supplier, we would like to buy it,” he said.
Published on 2 June 2025
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