Foreign institutional investors (FIIs) have resumed buying Indian equities, investing Rs 23,000 crore in just five days as of March 25.
This surge coincides with a seven-day rally in Nifty 50 and Sensex, fueled by lower valuations, a stronger rupee, and improving economic conditions.
On March 25 alone, FIIs purchased shares worth Rs 19,066 crore and sold Rs 13,694 crore, also triggering significant short covering.
Despite recent inflows, FIIs remain net sellers for the year, offloading â¹1.49 lakh crore. However, analysts suggest stabilizing valuations could attract further investments.
In this connection a financial expert said, "Although India experienced a bearish phase following market disruptions caused by Trump’s tariff policies and U.S. political developments, it has regained strength, backed by the trust of both domestic and foreign investors. Global investors are once again turning their attention to India, seeing it as a promising destination for capital.
With improving macroeconomic conditions, easing inflation, and attractive valuations, foreign institutional investors are making a strong comeback. Whether this renewed optimism will translate into a long-term bullish market remains to be seen, but India’s economic resilience and investor-friendly environment continue to make it an attractive opportunity for global capital."