Foreign Funds Beat Indian Indices in Q2

In the June quarter, a majority of top foreign portfolio investors (FPIs) witnessed significant gains in their Indian equity portfolios. Despite substantial FPI outflows totaling ₹1.26 lakh crore during the quarter, at least 75% of the top 20 foreign investors saw their disclosed India portfolio values rise between 10% and 37%.

This performance outpaced the Sensex and Nifty, which gained approximately 6.3% and 6.8% respectively. The strong returns underscore India's growing reputation as a stock picker's market, where selective investments, particularly in mid- and small-cap stocks, yielded superior results compared to broader indices. Analysts suggest a mix of stock appreciation and fresh buying contributed to the boost, with skillful stock selection playing a crucial role.