Fastest market rebound since 2003 invites scepticism for Indian stocks

The NSE Nifty 50 Index has surged more than 14% from a mid-June low as overseas investors turned buyers after months of withdrawals

The fastest rebound in Indian stocks in nearly two decades has some investors wondering whether the foreign-buying powered momentum can continue amid global volatility.

The NSE Nifty 50 Index has surged more than 14 per cent from a mid-June low as overseas investors turned buyers after months of withdrawals. That drove the benchmark from levels described by traders as oversold to strongly overbought territory in just 39 sessions, the quickest pace since 2003.

“The current turnaround in the stance of foreign investors with regard to India is yet to be confirmed,” said Kunal Valia, chief investment officer for listed investments