Domestic mutual funds reduced cash holdings to a multi-year low of four percent. Foreign institutional investors have returned as buyers after a significant selling period. This dual liquidity boost signals increased institutional risk appetite in Indian equities. Fund managers are selectively deploying capital into reasonably valued segments. Large-cap stocks and banks are expected to benefit from these renewed flows.

Foreign investors bought over $1 billion worth of Indian equities last week, marking their biggest weekly purchase since June 2025. Goldman Sachs expects inflows to continue,…

Foreign investors seem to be turning bullish on Indian equities again with more than $1 billion invested in the last week. Goldman Sachs Group Inc.