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FIIs Return to Indian Equities After Months of Heavy Outflows

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Foreign institutional investors are showing renewed interest in Indian stocks after a prolonged period of significant capital outflows. Analysts suggest Indian equities may be oversold, making them attractive to overseas buyers once again. Despite the positive shift in sentiment, risks remain due to ongoing geopolitical tensions and elevated global oil prices. India's domestic economy continues to show strength, supported by healthy credit and sales growth. The Reserve Bank of India is anticipated to align its monetary policy decisions with those of the US Federal Reserve going forward.

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