Foreign funds reversed their record exodus from Indian stocks as the country’s appeal as an alternative to China grows, boosting valuations for its equity market to a new peak.

Global investors bought $17.2 billion of shares in the South Asian nation on a net basis this year through Sept. 1, which more than made up for their retreat in 2022. Traders piled into Indian equities for six straight months through August, the longest streak since March 2021.

Stocks in India are in the midst of a multi-year rally with the key benchmarks S&P BSE Sensex and NSE Nifty 50 Index headed for their eighth consecutive year of advances. A strong corporate earnings performance, robust economic growth and political stability are drawing investors even as they flee other Asian emerging markets.

The resumption of foreign inflows in March has also broadened a rally in local shares to small and mid-sized companies, helping them to rise faster than their larger peers. This has boosted India’s market capitalization to an all-time high of $3.75 trillion on Monday.