Foreigners increased their holdings of Indian stocks by the most in two months last week as the rupee rebounded from a record low.
Overseas investors bought $644 million of local shares, the most since mid-October, according to data compiled by Bloomberg.
Rupee rebounds
The inflows coincided with the rupee posting its biggest weekly gain in nearly six months, following nearly $1.8 billion of equity outflows over the prior three weeks when the currency slid more than 1%.
The shift highlights the close link between the rupee and foreign investor flows, as currency moves directly affect dollar returns, suggesting exchange-rate stability remains key to sustaining global interest in Indian equities.
