Summary：Foreign Investors Turn Bullish, Inject ₹15,157 Crore in July After Four-Month Sell-Off **Introducti

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Foreign Investors Turn Bullish, Inject ₹15,157 Crore in July After Four-Month Sell-Off

**Introduction**
After four consecutive months of net outflows, foreign portfolio investors (FPIs) reversed course in July, pumping ₹15,157 crore into Indian equities. The shift coincided with a pickup in domestic macro‑economic indicators and a softer tone in global risk markets, prompting overseas funds to reassess India’s growth prospects. The debt segment also benefited, recording notable inflows as yields became more attractive relative to emerging‑market peers.

**Key Developments**
Data from the Securities and Exchange Board of India (SEBI) showed that FPIs bought ₹12,800 crore of stocks and added ₹2,357 crore to government and corporate bonds during the month. The equity buying was broad‑based, with heavyweights in banking, information technology and consumer staples leading the charge. Analysts point to three catalysts:

1. **Domestic fundamentals** – Q1 GDP growth came in at 7.8 % YoY, manufacturing PMI stayed above the 55‑mark, and retail inflation eased to 4.9 %, giving policymakers room to maintain a accommodative stance.
2. **Global risk appetite** – The U.S. Federal Reserve signaled a pause in rate hikes, while easing tensions in Eastern Europe reduced flight‑to‑safety flows, making emerging markets more palatable.
3. **Valuation appeal** – Indian equities traded at a forward price‑to‑earnings ratio of roughly 18×, a discount to the MSCI Emerging Markets index, prompting value‑driven buyers to re‑enter.

In the debt arena, foreign investors snapped up ₹2,357 crore of sovereign bonds, attracted by the 7.25 % yield on the 10‑year G‑sec, which outpaced comparable yields in Indonesia and Brazil after adjusting for currency risk.

**Industry Analysis**
Market