Foreign institutional investors (FII) have resumed buying Indian stocks, investing Rs 23,000 in just five days as of March 25th.
This surge coincides with the seven-day rally at Nifty 50 and Sensex, and will encourage lower ratings, stronger rupees and improved economic conditions.
On March 25 alone, FIIS bought shares worth Rs 19,066, selling Rs 13,694, causing a significant short cover.
Despite the recent influx, the FII remains the net seller that year, loading up Rs 1.49 lakh. However, analysts suggest that stabilizing the valuation could potentially attract further investment.
In this context, financial experts said, “India went through a bearish stage following the market turmoil caused by Trump's tariff policy and US political development, but it has regained strength backed by the trust of both domestic and foreign investors.
With improved macroeconomic conditions, easing inflation and attractive ratings, foreign institutional investors are making a strong comeback. It remains to be seen whether this new optimism will lead to a long-term bull market, but India's economic resilience and investor-friendly environment continue to make it an attractive opportunity for global capital.”
