Since the beginning of June, foreign investors have increased net purchases of shares worth more than $4 billion, which significantly exceeded their sales in previous months. This capital inflow is due to the fact that investors' concerns about political instability after the June 4 elections have dissipated. The growth of the market confirms the optimistic view of Indian investors that the foundations of the country's economy and stable corporate incomes are able to withstand political changes. The resumption of purchases of shares by foreigners, as well as the activity of domestic investors, including mutual funds and insurance companies, which contributed $28 billion this year, contributed to the further rise of the market. The benchmark Nifty 50 index has reached a new record high, reflecting investor approval of the Modi government's policies. Experts point out that India is one of the few major markets offering stable and rapid growth in the coming years, virtually independent of global events. A potential cut in interest rates by the central bank could make Indian stocks even more attractive to foreign investors, leading to even more capital inflows. The attractiveness of the Indian market is also enhanced by the uneven recovery of the Chinese economy and growing uncertainty over the upcoming elections in Europe and the United States.
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