Overseas funds are piling money into Indian stocks, marking a strong return to the $5 trillion market after election-related uncertainty earlier this year triggered a brief hiatus.At $8.5 billion, net foreign purchases this quarter are poised to be the highest since the middle of 2023,

India's foreign exchange reserves extended their winning run for a fifth straight week to hit a record high of $689.46 billion as of Sept. 13, data from the central bank showed on Friday.

Despite higher valuations, Indian equities remain attractive relative to other markets where growth prospects are more subdued,” said James Cheo, chief investment officer for Southeast Asia and India at HSBC Global Private Banking & Wealth in Singapore.

India's foreign exchange reserves reached a record high of $689.458 billion for the week ending September 13, increasing by $223 million. Despite this overall rise, foreign currency assets decreased by $515 million.

India's forex reserves reached a new all-time high of $689.46 billion for the week ending September 13, as reported by the Reserve Bank of India. Foreign currency assets dipped to $603.63 billion, while gold reserves surged by $899 million to $62.