NEW DELHI: India is expected to see fresh inflows of $50-70 billion into equities over the next 12 months, driven by steady participation from mutual funds and systematic investment plans (SIPs), according to global brokerage Jefferies on Friday.
The firm said that despite foreign investor positioning being at multi-year lows, India remains the strongest structural growth story in global markets.
In its latest ‘Greed & Fear’ report, Jefferies described 2025 as a year of “healthy consolidation” for Indian equities.
The brokerage expects that consistent domestic flows from mutual funds and systematic investment plans (SIPs) will absorb most of the expected foreign inflows, helping the market sustain momentum.
The report also highlighted that India could witness a fresh rally in 2026 as economic growth picks up pace.
It pointed to recent government measures, including industry-wide cuts in Goods and Services Tax (GST), which are expected to boost consumption and liquidity.
In addition, the US Federal Reserve’s recent rate cut has increased the chances of the Reserve Bank of India easing rates again before the end of this year.