Indian shares rise as foreign inflows surge and AI exposure stays low
Indian equities climbed on Friday after foreign investors recorded their biggest single-day net purchase in nearly six years, while lower oil prices eased macro pressures.
Indian stocks gained on Friday, buoyed by a sharp increase in foreign institutional buying and limited exposure to artificial-intelligence-linked trades. Foreign investors purchased about 150 billion rupees ($1.6 billion) of Indian shares on Thursday, the largest net inflow in almost six years, according to market data.
The Nifty 50 and Sensex rose 2.4% and 2.6% respectively after Brent crude slipped below $100 a barrel, easing concerns about demand and inflation in the South Asian economy. Shahzad Madon, managing director and CEO of TCG AMC, said that higher energy prices, AI-related trading, currency weakness and recent foreign outflows had been the main headwinds for the market, but that “the pressure is easing and the worst appears to be behind us from a macro perspective.”
State Street Investment Management’s APAC economist Krishna Bhimavarapu noted that “India has a good chance and markets are ripe for a rebound,” adding that continued supportive global conditions could make the country increasingly attractive to foreign investors.
The rally came as investors reassessed positions following the U.S. midterm election outcome and a decline in oil prices, which together reduced the macro-economic overhang on Indian equities.