Foreign Funds See Up to 37% Gains in Indian Equities in June Quarter in South Korea

During the June quarter, leading international funds encountered remarkable gains within Indian equities, significantly boosting their reported portfolio values. This strong performance exceeded that of key Indian stock market indices, primarily driven by astute investments in mid- and small-cap companies, reinforcing India's reputation as a promising landscape for discerning stock pickers. Mumbai: Keeping faith in Indian equities may have paid off for Goldman Sachs, Capital Group and other top foreign funds in the June quarter, when an overwhelming majority of overseas investors had been busy exiting local risk assets in the immediate aftermath of the Iran crisis.

At least 75% of the top 20 foreign portfolio investors (FPIs) saw their disclosed India portfolio values increase between 10% and 37% in the June quarter, outpacing gains from the Sensex and Nifty in the period, a Prime Database study that used portfolio values at the end of the period showed. To be sure, in comparison with the dizzying returns from South Korea and Taiwan, Asia's hot favourite semiconductor trades through the period, Mumbai may have yielded relatively circumspect gains.