Foreign Investors Return: Is the Market Rally Back?

After months of selling, foreign portfolio investors (FPIs) injected ₹24,454 crore into Indian equities in December’s first week, signaling renewed interest in the market. Factors include reduced U.S. rate concerns and geopolitical tensions easing. Experts see this as a strategic shift, with gains expected in banking and IT stocks. The October sell-off, driven by high U.S. bond yields and global uncertainties, appears to have reversed, boosting market sentiment. Analysts advise cautious optimism, emphasizing stable sectors for investment.