Overseas investors have stepped up their return to Indian equities, helping power benchmarks gauges to record highs and derivatives data signals more room for the rally.
Global funds have bought a net $3 billion of India stocks so far this month, according to Bloomberg-compiled data. Holdings of foreign investors in long index futures have risen by about six times from their September lows, to 127,000 contracts, while short bets have dropped 76% over the same period to 38,600 lots -- the least bearish positioning since April. The spread between outstanding index futures longs and shorts now stands at its widest since June 2021.
