3 weeks ago
Jefferies sees strong credit growth, capital inflows supporting Indian markets
Jefferies is a big money company that studies world markets.
It wrote a report about India's economy and stock market.
The report says India is doing well even though foreign investors sold a lot of shares this year.
Indian banks are lending more money than they have in over ten years.
Companies are borrowing a lot to grow their businesses.
People in India are also buying cars and homes, which shows demand is strong.
Indians living in other countries are sending money back through a special government plan.
The report thinks this could bring in even more money.
All of this helps make India's money, the rupee, more stable.
However, heavy foreign selling is still a risk to watch.
Jefferies reported net foreign buying of $2.45 billion in Indian equities in July, helped by an unwind of the memory trade.
Foreign investors remained net sellers of Indian equities totalling $25.4 billion year-to-date.
India's bank credit growth accelerated to 17-18% year-on-year, the highest in over a decade, with corporate lending up around 20%.
The RBI's scheme for foreign currency deposits from non-resident Indians has drawn about $41 billion, potentially rising to $80-100 billion.
The rupee, at 95.17 per US dollar after touching 96.96 in May, is expected to stabilise amid stronger inflows.
- Who
- Jefferies, including Global Head of Equity Strategy Christopher Wood and India strategist Mahesh Nandurkar, along with the Reserve Bank of India and foreign investors.
- What
- A Jefferies report says strong domestic credit growth, resilient demand and improving capital inflows will likely support Indian markets, with an improved outlook for the rupee.
- Where
- India.
- When
- Report published on August 9, 2026, covering market data including July 2026 flows.
- Why
- Accelerating bank credit growth, healthy auto and property demand, and stronger foreign currency inflows are counterbalancing heavy year-to-date foreign selling.
Key facts
- Net foreign equity buying (July)
- $2.45 billion
- Foreign equity selling (year-to-date)
- $25.4 billion
- Bank credit growth
- 17-18% year-on-year, highest in over a decade
- Corporate lending growth
- Around 20% (agriculture 17%, retail 16%)
- RBI NRI deposit scheme inflows
- About $41 billion so far
- Expected NRI scheme total
- $80-100 billion over next two months
- Government bond inflows since June
- $8.7 billion
- Rupee vs US dollar
- 95.17 (touched 96.96 in May)
Quotes
Christopher Wood
Jefferies Global Head of Equity Strategy
“All this increases the likelihood that the rupee should stabilise.”
thehansindia.com











