Foreign investors kept buying while domestic money stepped back
On the first trading day of July, foreign institutional investors extended their confidence in India's economic trajectory, channeling nearly two billion rupees into equities and lifting the Sensex and Nifty 50 to all-time highs. The day's corporate announcements — spanning telecom, banking, retail, healthcare, and energy — revealed an economy not merely growing but restructuring itself across multiple fronts simultaneously. While domestic institutions quietly took profits, global capital appeared to be making a longer wager: that India's convergence of rising credit demand, digital expansion, and consumer resilience represents something more durable than a single quarter's momentum.
- Foreign investors bought Indian stocks for the fourth straight day even as domestic institutions sold, creating a quiet tug-of-war at record market highs.
- Reliance's 999-rupee 4G phone targets 250 million Indians still locked out of the mobile internet, turning affordability itself into a growth engine.
- A landmark three-way merger between IDFC entities and IDFC First Bank signals that India's banking sector is consolidating complexity in pursuit of efficiency.
- Bajaj Finance added a record 3.84 million customers in a single quarter, and Bank of Maharashtra grew credit by nearly 25%, suggesting credit demand is broad-based, not fragile.
- From Biocon's biosimilar entering the US market to Torrent Power's green hydrogen pilot, companies are quietly placing bets on structural shifts that will take years to fully pay off.
- SpiceJet's closure of a loan outstanding since 2012 and HMA Agro's IPO debut together illustrate an economy where old debts are being settled and new capital is still finding willing takers.
Foreign institutional investors began July with conviction, pouring nearly ₹1,996 crore into Indian equities on Monday — their fourth consecutive day of net buying — even as domestic institutions stepped back as net sellers. The divergence pushed both the Sensex and Nifty 50 to all-time highs, reflecting a market where global capital is making a longer-term wager on India's growth story.
The optimism was grounded in concrete corporate momentum. Reliance Industries announced the Jio Bharat V2, a 4G-enabled phone priced at just ₹999, targeting the 250 million Indians still using 2G feature phones. With monthly plans starting at ₹123 and access to JioCinema, JioSaavn, and UPI payments, the device frames affordability as a strategic frontier. A beta trial across Reliance's retail network for the first million units signals a disciplined rollout of what could become a significant revenue stream.
In banking, the boards of IDFC Financial Holding, IDFC Ltd, and IDFC First Bank approved a long-anticipated three-way merger, simplifying a corporate structure that had grown unwieldy since the deal was first conceived in December 2021. Shareholders will receive 155 shares of the merged entity for every 100 held. Bank of Maharashtra added to the sector's strong showing, reporting nearly 25% credit growth to ₹1.75 lakh crore in the June quarter. Bajaj Finance went further still — its loan book grew 34%, and it added a record 3.84 million customers in a single quarter, bringing its total base to 72.98 million.
Consumer and retail businesses held their own. Avenue Supermarts posted ₹11,584 crore in standalone revenue for the quarter, up 18.13% year-over-year — and more than 200% since the first pandemic wave in 2020. Frozen meat exporter HMA Agro made its market debut after a 1.62-times subscribed IPO, while SpiceJet quietly closed a loan that had been on its books since 2012, a sign that its financial restructuring is gaining ground.
Looking further out, Biocon Biologics launched its Humira biosimilar HULIO in the United States after years of European and Canadian experience, entering the world's largest pharmaceutical market. Torrent Power began a green hydrogen blending pilot in its city gas network, with completion expected within eight months. Sula Vineyards announced a leadership transition, with chief winemaker Karan Vasani stepping up to replace the departing COO.
Taken together, Monday's announcements sketched an economy advancing on several fronts at once — digital inclusion, banking consolidation, consumer spending, and longer-horizon bets in healthcare and clean energy. Foreign investors, it appeared, were reading the same picture and choosing to stay in.
Foreign investors opened July by pouring nearly two billion rupees into Indian stocks on Monday, extending their buying streak to four consecutive trading days. The move came as the Sensex and Nifty 50 both reached all-time highs, a signal that international money still sees value in Indian equities even as domestic institutional investors stepped back as net sellers. The contrast between foreign and domestic appetite underscored a market in transition—one where global capital remains confident while local players are taking profits.
The optimism had concrete reasons. Reliance Industries announced it would launch the Jio Bharat V2, a 4G-enabled phone priced at just 999 rupees, beginning July 7. The device targets India's 250 million people still using data-starved 2G feature phones, a vast untapped market. The phone will connect users to JioCinema, JioSaavn, FM Radio, and UPI payments through JioPay, with monthly plans starting at 123 rupees. Reliance said it would conduct a beta trial across its retail network for the first million units sold, a methodical approach to what could become a significant revenue stream in a market where affordability remains the primary barrier to digital adoption.
In the banking sector, structural change was underway. The boards of IDFC Financial Holding, IDFC Ltd, and IDFC First Bank all approved a three-way merger on Monday that will consolidate the three entities into a single bank. Shareholders of IDFC will receive 155 shares of the merged bank for every 100 shares they hold. The deal, first approved in principle in December 2021, simplifies a corporate structure that had grown unwieldy and should unlock operational efficiencies. Bank of Maharashtra, meanwhile, reported credit growth of nearly 25 percent to 1.75 lakh crore in the June quarter, with total business expanding 24.82 percent to 4.19 lakh crore—evidence that lending appetite remains strong across the sector.
Non-banking finance showed equally robust momentum. Bajaj Finance's loan book swelled 34 percent to 9.9 million customers in the April-June quarter, up from 7.2 million a year earlier. The company's total customer base reached 72.98 million by June 30, a gain of 3.84 million in a single quarter—the largest quarterly addition in the company's history. This kind of growth in a mature NBFC suggests both strong demand for credit and the company's ability to scale operations without losing discipline.
Retail and consumer-facing businesses showed their own strength. Avenue Supermarts, the DMart operator, posted standalone revenue of 11,584 crore rupees in the first quarter, up 18.13 percent year-over-year. Since the first pandemic wave in 2020, the company's revenue has grown more than 200 percent—a remarkable expansion that reflects both the company's operational excellence and the underlying resilience of Indian consumer spending. HMA Agro Industries, a frozen meat exporter, made its stock market debut on July 4 after its IPO was subscribed 1.62 times at the upper price band of 585 rupees per share, raising 480 crore rupees.
Airline SpiceJet reported a milestone of its own: it completed repayment of a 100-crore-rupee loan to City Union Bank that had been outstanding since 2012. The final 25-crore tranche was paid on June 30, closing the entire account. The repayment followed a successful settlement with Nordic Aviation Capital, a major lessor of the airline's aircraft, signaling that SpiceJet's financial restructuring is progressing.
In healthcare and energy, companies were making longer-term bets. Biocon Biologics launched HULIO, its biosimilar to Humira, in the United States market after five years of experience in Europe and two years in Canada. The drug treats inflammatory diseases and represents a significant expansion of the company's biosimilar portfolio into the world's largest pharmaceutical market. Torrent Power began a pilot project to blend green hydrogen with natural gas in its city gas distribution network, a move toward cleaner energy that the company expects to complete within eight months.
At Sula Vineyards, the wine producer announced that chief operating officer Chaitanya Rathi had resigned to pursue opportunities elsewhere. He will be succeeded by Karan Vasani, the company's chief winemaker, who previously worked as an analyst at the financial services firm Crisil and will now oversee winemaking, winery operations, and viticulture.
The day's earnings and announcements painted a picture of an Indian economy firing on multiple cylinders—telecom expanding into new customer segments, banks consolidating and growing, consumer retail accelerating, and companies in healthcare and energy positioning themselves for longer-term structural shifts. Foreign investors, it seemed, were betting that this momentum would persist.
Citas Notables
The launch of HULIO, our biosimilar adalimumab, in the US is an important milestone for Biocon Biologics as it expands our well-known biosimilar product offering to patients in the US— Shreehas Tambe, CEO and MD of Biocon Biologics
La Conversación del Hearth Otra perspectiva de la historia
Why did foreign investors keep buying while domestic money was selling? That seems like a contradiction.
Not really. Domestic investors often take profits when indices hit new highs—it's a natural rhythm. Foreign investors, though, are looking at the underlying growth stories. When Bajaj Finance adds 3.84 million customers in a single quarter, or when DMart grows 200 percent since 2020, that's the kind of structural expansion that justifies staying invested.
The Jio Bharat phone at 999 rupees seems almost too cheap. How does Reliance make money on that?
The phone itself might be a loss leader. The real money is in the monthly plans—123 rupees gets you access to their ecosystem. Once 250 million feature phone users have a device that can stream JioCinema or use JioPay, Reliance has a captive audience for services. It's a market expansion play, not a hardware play.
The IDFC merger has been pending since 2021. Why approve it now?
Markets reward simplicity. Three separate entities with overlapping functions create confusion and inefficiency. Merging them into one bank reduces costs, clarifies the business model, and makes it easier for investors to value. Sometimes the timing is less about the deal itself and more about when the market is ready to absorb the change.
SpiceJet repaying a decade-old loan—is that actually significant?
It signals survival. SpiceJet nearly collapsed during the pandemic. Repaying a 100-crore loan that's been hanging over the company for eleven years means the restructuring is working. It's not a turnaround story yet, but it's proof the airline can generate enough cash to service old debt.
What does Biocon's US launch of a biosimilar really mean?
It means Indian pharma is moving upstream. Biosimilars are complex, expensive to develop, and require regulatory approval in the world's most stringent market. If Biocon can compete in the US, it's not just a generic drug maker anymore—it's a genuine innovator. That changes the company's valuation and its long-term prospects.