Rs 37,600 crore in 11 days! FIIs are flooding Indian stocks with cash but will it last?
For 11 straight sessions, foreign investors have been on a stock-buying spree in India, pumping a staggering Rs 37,600 crore into local equities. It's the kind of bullish streak that turns heads on Dalal Street—and it's happening as the rupee flexes its muscles and the dollar shows signs of fatigue.
ADVERTISEMENT The Indian currency soared 77 paise against the greenback on Wednesday, closing at a five-month high of 84.49. That's the sharpest single-day gain since November 2022. The tailwinds? A cooling crude oil market and this relentless wave of foreign institutional investor (FII) inflows.
The mood in the global macro theater is adding to the India cheer. According to Emkay Global, 'The DXY correction of ~10% from its peak is meaningful, now below 100 after 100 days of Trump's tumultuous tenure. Tariff risks appear largely priced in, with the path ahead skewed toward constructive trade negotiations broadly favorable for India.'
Emkay also noted that the majority of their clients 'concurred with our positive view on India. The RBI easing puts India in a more favorable cyclical position, especially as worries around a deep recession in the US abate. This is also resulting in India seeing disproportionate flows vs other emerging markets.'
Also read | Nifty traders, don't sell in May - just sway. Here's why the May myth crashes on Dalal Street
ADVERTISEMENT That conviction is showing up in the numbers—and the narrative.'Valuations are back to neutral territory & have started to look attractive,' said Pradeep Gupta, Executive Director and India Head of Investment at Lighthouse Canton. 'India now trades at a premium of 75% to the EM Index—not too far from long-term averages of 61%.'
ADVERTISEMENT Gupta added that while FIIs remain underweight on India for now, that positioning may not hold for long. 'We expect the flow rotation from China to India to start taking place soon, while overall intensity of FII selling is also likely to start coming down.'The weakness of the dollar and India's macro resilience have turned the country into a magnet for global capital.
ADVERTISEMENT 'FIIs are positive on the India story,' said Vikram Kasat, Head of Advisory at PL Capital, 'but they remain cautious about high valuations.' With India still trading at a premium to its EM peers, foreign investors are zeroing in on quality names and sectors, steering clear of indiscriminate buying.Still, this doesn't look like hot money just passing through. The sustained inflows suggest conviction—especially in the face of tepid Q4 earnings and geopolitical tensions with Pakistan.
Vinod Nair, Head of Research at Geojit Investments, struck a balanced note. 'The broad market performed well this month, driven by reduced tariff risks, a potential US-India trade deal, and strong FII inflows,' he said. 'However, momentum is being capped by rising tensions between India and Pakistan and muted Q4 results. This negative bias is expected to persist in the near term... but the long-term outlook remains positive.'
ADVERTISEMENT The Rs 37,600 crore question: Is this a lasting trend or just a tactical bet? For now, the smart money is betting on India—and not looking back.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
18 minutes ago
- Business Standard
Non-Mumbai builders tap into financial capital via redevelopment projects
Real estate developers based outside of Mumbai such as Delhi-based DLF, Bengaluru-based Prestige Estates, Puravankara, Pune-based Blackstone-backed Kolte-Patil Developers, Vascon Engineers, and Hyderabad-based Ramky Estates, are foraying into India's largest real estate market through redevelopment projects. While Mumbai has always been India's prime real estate market, policy-level incentives for redevelopments, less capital intensive nature of redevelopment business amid a lack of open land parcels, is attracting developers that are using asset-light strategies to get better realisations from high property rates. 'For developers based outside the MMR, redevelopment offers an effective route to enter the Mumbai market, given the limited availability of greenfield land. Additional attractive factors include higher FSI allowances in slum rehabilitation and society redevelopment projects, which translate to better returns on investment,' said Siddharth Vasudevan, MD, Vascon Engineers. Mumbai's redevelopment market is big enough to accomodate more players like Bengaluru-based Sobha and Ahmedabad-based Arvind Smartspaces are evaluating opportunities. According to Credai-MCHI, over 25,000 buildings across MMR are eligible for redevelopment, with the total estimated project value exceeding Rs 30,000 crore. As per Anarock, as of 2024, average property prices in MMR stood at Rs 16,600 per sq ft, while those in Bengaluru and Hyderabad stood at Rs 8,380 per sq ft and Rs 7,300 per sq ft, respectively. The prices in NCR stood at Rs 7,550 per sq ft. Vijay Agrawal, MD- investment banking, Equirus said that the average margins in real estate are around 25-30 per cent but the Mumbai market is known for higher realisation per square foot, between Rs 25,000 and Rs 1 lakh. 'In other cities, general realisation is between Rs 5,000-12,000, except in a few micro markets. Higher realisations help developers disclose higher revenue with a smaller sales area. This helps in improving their blended per sq ft realisations.' In Mumbai, a developer can book revenue of Rs 500 crore for 1 lakh sq ft of a project with a sale price of Rs 50,000 per sq ft for one project. However, in other markets, a developer will need to sell 5 lakh sq ft of area at Rs 10,000 per sq ft to achieve the same revenue, Agrawal explained. 'Listed companies can meet their topline growth targets by executing projects in this market," Sanjay Daga, CEO and MD, Anex Advisory, said. But the bright opportunity has its challenges. Redevelopment for non-Mumbai developers involves multiple stakeholders, so having a reliable team in a new market in a must. Dealing with local tenants besides higher cost of approvals, construction in smaller area of sites compared to the other cities, are other issues to name a few. 'Developers fail to underwrite the working capital requirement in Mumbai projects. A typical project in other cities is between 5 to 15 acres, while Mumbai's typical project is 0.5 to 3 acres. Construction costs in Mumbai are very steep,' said an industry expert who didn't wish to be named. To overcome these hindrances, developers are forging joint ventures with local developers who already have the land or permissions, and industry experts who hold the ability to deal with the local administration and tenants more effectively. This helps in securing faster approvals and faster project launches. DLF, for its first Mumbai project, has tied up with Trident Realty, a local real estate firm. Prestige, for its mega redevelopment project in Bandra, has joined hands with Mumbai-based Valor Estate and RC Group. Despite strong balance sheets and deep expertise, building trust among buyers will take time. 'Local developers, due to their deep-rooted presence and familiarity with these intricacies, often have an edge,' Shrinivas Rao, CEO, Vestian.
Hindustan Times
21 minutes ago
- Hindustan Times
Which country in Southeast Asia is the most popular among Indian travellers?
Known for its pristine beaches, affordable stays and vibrant nightlife, this country received the highest number of Indian tourists among Southeast Asian countries in 2024. Can you guess which one? Also read: 10 million tourists visited Asia's 'most-loved country' in Q1; more than Thailand, Indonesia India is one of Thailand's most significant tourism markets, the Tourism Authority of Thailand (TAT) said in a press release in December 2024 to celebrate the 2 million-mark of Indian tourists in Thailand. In 2023, Indian tourists generated 61.9 billion Baht in revenue for Thailand. More than 35.5 million foreign tourists visited Thailand in 2024. Of these, 2.1 million were Indians. Indian travellers arrive in Thailand around the year. November to February is typically considered the high tourist season, overlapping with winter vacation for schoolchildren in India. Thailand is a popular tourist destination with both bachelors and families. There are plenty of factors that contribute to Thailand's popularity as India's favourite tourist destination, including accessibility, affordability and distance. In its press release, the Tourism Authority of Thailand (TAT) said: 'Thailand's strong air connectivity with India has been instrumental in fostering this growth. As of June 2024, 342 weekly flights between the two nations offered 2.9 million seats annually, representing a 92.2% rebound from pre-pandemic levels. Recent additions, including Indigo's Hyderabad-Bangkok route, THAI's Kochi-Bangkok flights, and Thai AirAsia's Vishakhapatnam-Bangkok service, have further enhanced accessibility.' Friendly visa policies are another major factor contributing the footfall. Thailand has visa-free entry for Indians 'until further notice'. Popular tourist destinations in Thailand include Bangkok, Phuket, Chon Buri, Krabi, Chiang Mai and Phang-nga. Places like Phuket and Krabi are known for their stunning beaches and water activities. In Bangkok, tourists can enjoy shopping, visit famous temples like Wat Phra Kaew and Wat Arun, or drop into one of the city's famous rooftop bars. Chiang Mai, located in northern Thailand, is famous for its historic temples, night markets, and mountain landscapes. It also serves as a base for visiting elephant sanctuaries.
Mint
27 minutes ago
- Mint
India's National Manufacturing Mission is just the catalyst this sector needs
India's National Manufacturing Mission (NMM), announced in the Union budget this year, was much awaited. While the sector has grown over the years in size, its contribution to our economy has not gained share. The need to increase manufacturing as a proportion of GDP has always been emphasized and this mission-mode approach announced by the government should make a difference. An ambitious, empowered and inclusive framework is expected to be the hallmark for this mission. It must target a share of at least 12% in global manufacturing output for India, as against the current 3%. Let me share a few thoughts on a framework that could help propel India as a manufacturer. Also Read: Time to re-imagine Indian manufacturing from the ground up The first aspect is the structure of the mission, which could determine the success or failure of the initiative. The NMM can consider a three-tier structure. At the initial level, the government could consider having inter-ministerial task-forces. These should focus on the five key areas spelt out by the finance minister in her budget speech for 2025-26: namely, the ease of doing business; a future-ready workforce; micro, small and medium enterprises (MSMEs); technology adoption; and quality. These five task-forces could be under the concerned ministries with various stakeholders as members. They should recommend policies, propose roadmaps and drive implementation. The NMM could be headed by a senior industry leader. This can be the second tier. Its main members could be secretaries of key government departments related to manufacturing; they can provide policy and strategic direction. In addition, CEOs from industry associations could be members, while state chief secretaries can be special invitees. This high-level private-public partnership model will be crucial for driving this mission. At the pinnacle of this structure could be a high-level committee headed by the Prime Minister. Its members could be the NMM chairperson, finance minister, commerce and industry minister, cabinet secretary and a representative of the Niti Aayog. This three-tier structure, in our view, would be inclusive and empowered to drive reforms and take the steps required to achieve our goals. Also Read: Think ahead: India's electronics manufacturing must go up the value curve The second aspect is whether the NMM should have a sectoral focus or address sector-agnostic issues. In this, the Federation of Indian Chambers of Commerce and Industry (Ficci) has suggested that its dominant focus should be on sector-agnostic areas, like regulatory reforms, cost competitiveness, the overall investment climate, skilling, quality, productivity and the like. The mission should also make strategic interventions in frontier-technology fields—such as electronics, batteries, defence, space, renewables, AI, quantum computing, etc—by boosting domestic design capability and value addition. Last year, the government announced an allocation of ₹1 trillion to encourage research and development (R&D) in sunrise domains by the private sector. We need to leverage this fund now to take a lead in the frontier technologies. The NMM's priorities are the third aspect. A sine qua non list would include macro-level policies, be it logistics, monetary, fiscal, tariffs or trade. These should be fully aligned with the mission's needs. It would also cover technology, which needs to be the key driver of manufacturing. A focus on value addition by way of design, key components and so on must also feature as a priority. So also export competitiveness, global value chain integration and import substitution in critical areas of dependency. As its fourth aspect, the mission will lay emphasis on MSMEs, which have been the main driver of manufacturing growth in several countries. Also Read: Rahul Jacob: Manufacturing is crying out for a reality check Ficci has suggested six areas of intervention: Training for MSME promoters to grow into mid-sized or large firms in the future; an impetus to family-owned businesses; the development of urban MSME zones, non-polluting MSME malls or urban industrial clusters within city limits to reduce logistical costs and enhance market access for small enterprises; support for environment, social and governance capacity among MSMEs; a catalyst for digital adoption across MSMEs to drive efficiency and growth; and light-touch regulations for three years for MSMEs in strategic areas to help them take off. For India to become a global manufacturing powerhouse, quality cannot be ignored. The mission should collaborate with industry consortiums to set Indian standards and India should take an active part in such processes at international standard-setting bodies. We need to promote and push Indian standards alongside our exports. Apart from the NMM, a high-level committee for regulatory reforms was also announced by the government. Ficci has suggested some broad terms of reference for its institutional structure, urging the adoption of a regulatory impact assessment framework to ensure transparent and consistent policy implementation across regulators. Overall, the two structures should lead to seamless communication and interaction between all stakeholders at every level—from central and state functionaries to experts and leaders of academia and industry—with everyone focused on one mission: manufacturing. The author is president, Federation of Indian Chambers of Commerce and Industry.
