In July, foreign investors turned net buyers of Indian equities following a period of large outflows, prompted by favorable domestic macroeconomic trends and improved global risk sentiment. The Indian debt market also saw a significant influx of foreign investments, attributed to recently modified debt taxation that enhanced its attractiveness. The continuity of these inflows is contingent upon both global developments and the pace of India's economic growth.

Foreign investors return to Indian equities in July with ₹15,157 crore inflow, reversing four months of selling.

In July, foreign investors turned net buyers of Indian equities following a period of large outflows, prompted by favorable domestic macroeconomic trends and improved global risk…