Mumbai, July 26, 2026 (Yes Punjab News)
The weakening global semiconductor trade is emerging as a positive development for Indian equity markets, with foreign portfolio investors (FPIs) continuing to channel funds into the country even as they remain sellers in several other Asian markets, analysts said.
According to market data, FPI equity investments in India stood at ₹14,945 crore through July 24, including ₹3,167 crore through exchanges and ₹11,778 crore via the primary market. Debt inflows also remained strong, supported in part by the Centre’s recent debt taxation reforms.
Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., said continued FPI selling in markets such as South Korea and Taiwan reflected the slowdown in the global chip trade, which has worked in India’s favour. However, he cautioned that the recent spike in Brent crude prices amid escalating tensions in West Asia poses a risk to India’s macroeconomic outlook if elevated prices persist.
He noted that a decline and stabilisation in crude oil prices could encourage FPIs to become consistent buyers in Indian equities.
Domestic markets, meanwhile, ended the week on a weak note as higher crude prices and geopolitical uncertainties dampened investor sentiment. The BSE Sensex fell 2.68 per cent to close at 76,059.77, while the NSE Nifty declined 2.33 per cent to settle at 23,767.45.
Analysts attributed the decline to sustained foreign institutional investor selling, particularly in financial stocks, amid rising bond yields and global uncertainties. Despite the weakness, India’s foreign exchange reserves rose by $964 million to $675.16 billion, providing support to the country’s external sector.
Market participants will closely watch global policy developments, key domestic macroeconomic data and corporate earnings in the coming week.
FOLLOW NOW
