India's benchmark Nifty 50 index surged to a record high of 25,200 points during Tuesday's trading session, buoyed by massive foreign institutional investor (FII) inflows that have exceeded $10 billion in the current quarter alone.
The rally was broad-based, with 42 of the 50 Nifty constituents closing in positive territory. HDFC Bank, Infosys, and Reliance Industries were the top contributors to the index gains. The broader market also participated, with the Nifty Midcap 100 gaining 1.5%.
"India is clearly the preferred emerging market destination right now," said Ridham Desai, Managing Director at Morgan Stanley India. "Strong GDP growth, political stability, and improving corporate earnings make it an irresistible opportunity for global investors."
Market analysts attribute the FII surge to India's relative economic outperformance compared to China and other emerging markets, combined with expectations of monetary policy easing by the Reserve Bank of India later this year.
