FIIs turn net buyers, infuse ₹40,145 Cr into Indian equities amid global shifts

Foreign Institutional Investors (FIIs) have reversed their earlier bearish stance, emerging as net buyers in Indian equities with a massive investment of ₹40,145 crore over the past 12 trading sessions.

This sudden pivot in FII behavior is largely driven by two global cues: US President Donald Trump’s decision to pause reciprocal tariffs for 90 days and the softening of the US dollar, which is making emerging markets like India more attractive.

From Selling to Buying

April marked a turning point for FIIs, who poured ₹3,243 crore into Indian equities—breaking away from the aggressive selling seen in the first quarter of 2025. Between January and March, FIIs had withdrawn a whopping ₹1,29,680 crore from the Indian market.

Now, the tide has turned.

Market Experts Weigh In

According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, “FIIs have been consistent buyers in the cash market over the past 12 trading days, confirming the trend reversal.”

This change in strategy is significant, especially considering the sharp contrast to the sustained outflows earlier this year.

Outlook: Cautious Optimism

Despite this renewed interest, analysts remain cautious. Earnings growth for FY25 is expected to hover around a modest 5%, which could potentially limit the momentum of future FII inflows.

Nonetheless, the latest figures indicate a growing confidence among global investors in the resilience of Indian markets.