Daijiworld Media Network - Mumbai

Mumbai, Jun 2: After a major sell-off earlier this year, foreign investors are making a strong return to Indian equities, driven by a record $5.5 billion in block trades in May the highest in nearly a year.

According to bankers, the surge in large deals reflects renewed confidence, with demand from global long-only funds and seasoned India-focused investors. Key transactions included British American Tobacco’s $1.51 billion stake sale in ITC, a $1.36 billion offload by IndiGo co-founder Rakesh Gangwal, and Singtel’s $1.5 billion sale of Bharti Airtel shares.

“This was the busiest May on record,” said Sunil Khaitan of Goldman Sachs India. “We’re seeing high-quality global investors reengaging with conviction.”

The Nifty 50 has gained 6% since April, as India emerged as a relative safe haven following a pause on US tariffs. Foreign investors bought around $3 billion in Indian stocks across April and May, reversing some of the $29 billion outflows seen from October to March.

Experts credit improved sentiment to strong economic fundamentals, lower interest rates, and more reasonable valuations. “Investors are telling us they’re ready to buy quality Indian companies if sellers emerge,” said Arvind Vashistha of Citigroup India.