Foreigners buy most Indian stocks in two months as rupee recovers

Foreigners buy most Indian stocks in two months as rupee recovers

Foreigners increased their holdings of Indian stocks by the most in two months last week as the rupee rebounded from a record low.

Overseas investors bought $644 million of local shares, the most since mid-October, according to data compiled by Bloomberg. The inflows coincided with the rupee posting its biggest weekly gain in nearly six months, following nearly $1.8 billion of equity outflows over the prior three weeks when the currency slid more than 1%.

The shift highlights the close link between the rupee and foreign investor flows, as currency moves directly affect dollar returns, suggesting exchange-rate stability remains key to sustaining global interest in Indian equities.

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