By By Saurav Mukherjee
Mumbai (Maharashtra) [India], August 1 : Foreign investors are beginning to return to Indian markets as currency stability improves and corporate earnings regain momentum, Motilal Oswal, Group MD and CEO of Motilal Oswal Financial Services, said, expressing optimism that overseas capital inflows will continue in the coming months.
Speaking to ANI on the sidelines of the 9th edition of the Motilal Oswal Business Impact Conference (MOBIC) in Mumbai, Oswal said the trend of foreign investors selling seen over the past couple of years is beginning to reverse.
"When we interact with global investors, the feedback today is that flows are now stabilizing. In fact, looking at the month of July, we have started seeing net inflows again. A lot of investors are coming back and engaging in value buying," he said.
Oswal attributed the improving sentiment to greater stability in the rupee and easing concerns over geopolitical tensions and crude oil prices.
"I remain quite optimistic that foreign investors will continue allocating capital to India because they have long-term confidence in the country. Short-term currency volatility happens everywhere, and earlier concerns regarding geopolitical conflicts and high oil prices are gradually diluting and settling down," he told ANI.
On the broader outlook for Indian markets, Oswal said India continues to offer strong long-term investment opportunities despite global uncertainties.
"Geopolitical events in today's highly interconnected world impact everyone. However, when you look at the opportunity size, especially from an investor's perspective, India offers long-term, structural growth opportunities characterized by both immense scale and remarkable speed," he said.
He added that improving corporate earnings are also supporting investor confidence. "Last two years, index earnings were not great, but when you look at mid-cap companies, the mid-cap profit growth in 2026 was 27 per cent. This year we feel anywhere between 15 to 17 per cent earnings growth, which is fantastic. That's what brings optimism that we are on the right path," Oswal said.
On policy measures to attract foreign capital, Oswal said foreign investment remains important for India and any reforms that make the market more attractive would be beneficial.
Looking ahead, he said domestic investors are expected to continue providing support to the market even as new equity issuance gathers pace.
"My only worry today is whether there will be too much dilution from IPOs and QIPs because supply is continuing to come. But the encouraging part is the strength of domestic money, especially through SIPs and rising household savings. We are hopeful that a meaningful part of these savings will continue to flow into the markets," he told ANI.