After months of net withdrawals, foreign portfolio investors (FPIs) have returned to Indian markets, investing Rs 6,480 crore so far in October, driven by robust macroeconomic indicators.

This comes on the heels of substantial outflows in recent months: Rs 23,885 crore in September, Rs 34,990 crore in August, and Rs 17,700 crore in July, according to depository data.

The renewed inflows signal a positive turnaround in sentiment, highlighting growing global investor confidence in India’s market prospects.

VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited gave two factors of this change: One, the valuation differentials between India and other markets, which were high earlier, had come down significantly in recent weeks following the rally in other markets and consol

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