Global investors have once again turned their attention to the Indian stock market, demonstrating a record capital inflow over the past few years. In the week from July 5 to July 9, foreign funds purchased Indian stocks worth $1.3 billion. This is the largest weekly figure since June 2025.
This sharp change in dynamics contrasts with the massive capital outflow observed in the first half of 2026. From January to May 2026, non-residents withdrew about $21 billion from local stocks. However, the trend has now reversed: on Friday, July 10 alone, foreign investors bought securities worth $272 million on the domestic market.
The turning point was the actions of the Reserve Bank of India (RBI). The regulator opened forward currency swaps for new FCNR (B) deposits, making them more attractive to foreigners. Additionally, starting April 1, 2026, the capital gains tax for foreign portfolio investors on the sale of government bonds has been abolished.
Against this backdrop, Goldman Sachs analysts have revised their forecast upward. They note that global funds still have significant room to return to Indian stocks due to a substantial underweight in their portfolios. According to their assessment, current demand from funds is still low, meaning there is great potential for increasing exposure, especially amid the rupee's stability and clearer yield forecasts.
Experts expect the Nifty 50 index to reach 26,500 points by June 2027, approximately 10% higher than current levels. This confirms that the Indian market is transitioning from a correction phase to a phase of sustainable recovery, attracting long-term capital.
Expert opinion: The record inflow of funds into Indian stocks is not just a one-time surge but the beginning of a structural trend. RBI policies and tax relief create a strong foundation for India's attractiveness as an alternative to the Chinese market. For crypto investors, this is a signal: global capital is seeking new havens, and traditional markets are actively competing with digital assets.