Global funds revisit Indian stocks as oil, rupee risks recede

Global funds are returning to Indian stocks as crude oil prices retreat and the rupee recovers from record lows. Foreign portfolio selling has slowed, with U.S.-listed India-focused ETFs turning positive last week for the first time in over a month, and India now ranks among the most oversold emerging markets tracked by global managers. The rupee has recovered to around 94.50 per dollar from a record low near 97 on May 20, though fund managers caution that a sustained rerating would require earnings growth to accelerate from recent single-digit levels to the mid-teens as analysts project.