In the first half of 2025, domestic institutional investors aggressively bought Indian equities, exceeding ₹3.5 lakh crore, while foreign portfolio investors remained net sellers at ₹1.2 lakh crore. A turnaround occurred in March due to easing interest rates and government tax incentives. Analysts anticipate continued foreign inflows and domestic investment, projecting a positive outlook for FY26.
Will RBI announce steep rate hikes? Nomura sees up to 50 bps increase by Dec, dismisses 125 bps hike fears
Nomura expects the RBI to pursue a limited tightening cycle, with a possible 50 bps rate hike by December, as food and energy pressures rise