India clocks highest quarterly rally of 20% since 2009

After the crash in March when FPIs pulled out close to USD 7 billion, Indian capital markets saw a lot of action in the last quarter with FPIs rushing back to cash in on cheap valuations of most Indian companies. Let’s get up to speed on how India’s markets performed in the April to June quarter.

Compared to the decline of 29% in the previous quarter, the Indian benchmark index Nifty gained nearly 20% this quarter driven largely by the optimism around swift recovery post lockdown and massive liquidity flowing in from foreign markets. While DIIs invested USD 1.46 billion in the June quarter, FPIs poured in USD 3.91 billion. 

As we can see from the graph above, in the last three months, half of the FPI money which was withdrawn in March has made its way back to Indian Equity Market and we expect FPIs to continue to remain bullish and bring its participation to pre-pandemic levels in the next 3-6 months. 

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