FIIs Pour ₹30,000 Crore Into Indian Equities in 10 Days
Foreign Institutional Investors (FIIs) have injected nearly ₹30,000 crore into Indian equities over the past 10 days, marking a sharp reversal in market sentiment and signaling renewed confidence in India’s growth story. This surge follows a prolonged period of net selling that began in October 2024, with a modest recovery first noted in March.
FII Inflow India
The turnaround has reignited bullish momentum in the Indian stock markets, with major indices witnessing strong upward movement amid increasing foreign participation. Analysts view this sudden influx as a combination of global economic realignment, favorable domestic fundamentals, and improved investor sentiment.
Indian Stock Market Rally
Several key factors have fueled this FII buying spree:
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Global Economic Shifts: The recent rally in U.S. equity markets, coupled with a stable dollar, has prompted global investors to look towards emerging markets like India for better returns. As global recession fears ease, appetite for higher-growth markets has risen.
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Improved Valuations: After months of corrections and market consolidation, Indian equities are now seen as offering more attractive valuations, particularly in sectors like banking, financial services, and consumer goods.
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Positive Earnings Outlook: Expectations of strong corporate earnings in FY26, especially in banking, auto, and consumer sectors, have bolstered confidence. Analysts predict a healthy earnings growth trajectory, making India an appealing investment destination.
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Domestic Consumption and Monsoon Forecasts: Early indications of a favorable monsoon season and rising domestic consumption trends have added optimism, particularly for sectors dependent on rural demand and agricultural cycles.
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Liquidity Support from RBI: The Reserve Bank of India’s liquidity measures have enhanced market stability, with particular benefits for banking stocks, which form a significant weightage in major indices.
FII Buying Trend
Despite recent geopolitical tensions and intermittent market volatility, the surge in foreign inflows underlines India’s growing resilience in the global economic framework. The scale of the current FII participation suggests a longer-term confidence in India’s macroeconomic fundamentals rather than a short-term tactical move.
Market watchers believe that if domestic earnings momentum continues alongside stable global conditions, FII inflows could sustain in the coming quarters, further propelling the Indian markets to new highs.
