New Delhi, Sept. 2 -- Foreign investors returning to India are chasing discounted block deals and new share sales rather than buying from the open market, blunting the impact of fresh capital on broader indices. September's mega-issuances, led by the National Stock Exchange, may reinforce the trend, leaving little money to bid up existing stocks and keeping local indices range-bound.

Benchmark Sensex and Nifty gained just 0.6% and 0.9%, respectively, over the last two months, a period when foreign portfolio investors (FPIs) ploughed in Rs.50,000 crore, reversing a long selling spree that began in September 2024. The muted market response suggests that much of this money is being channelled into new and newly available shares, rather than...