US Inflation: Reverse AI trade drives foreign inflows back to India but rising US inflation poses challenge: Ajay Bagga
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Foreign investors pumped over Rs 53,000 crore into Indian equities in November.
- ✓Market expert Ajay Bagga said, "Some of those funds are coming back into India." While falling crude oil prices and attractive valuations helped, Bagga warned that rising US inflation could pose a challenge for these foreign investment flows.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Economic Times
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Foreign investors are returning to Indian equity markets as global funds shift away from the artificial intelligence infrastructure trade in markets such as the US, Japan, South Korea and Taiwan, while India's relatively attractive valuations and falling crude oil prices are improving its investment appeal, banking and market expert Ajay Bagga said.
According to NSDL data, foreign investors have pumped over Rs 53,000 crore into Indian equities in November so far, following two consecutive months of selling.
In an interview with on Wednesday, Bagga said it was too early to conclude whether the recent buying would turn into a sustained trend, but identified the reversal in the global AI trade as one of the major reasons behind the return of foreign money to India.
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Economic Times
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