FIIs pour over ₹16,400cr into Indian stocks after major sell-off
What's the story
Foreign Institutional Investors (FIIs) have pumped in over ₹16,400 crore into Indian equities this week.
The massive investment comes after a major sell-off on May 9 amid increased tensions between India and Pakistan.
According to stock exchanges' data, FIIs bought Indian stocks worth ₹5,392.94 crore on May 15 and ₹8,831.05 crore on May 16 after modest inflows of ₹1,246.48 crore on May 12 and ₹931.80 crore on May 14.
Investment insights
FIIs' sustained buying trend noted by experts
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, emphasized the recent trend of sustained buying by FIIs.
He said, "FIIs bought equity through the exchanges consecutively for 16 trading days ending 8th May for a cumulative amount of ₹48,533 crore."
The India-Pakistan ceasefire has greatly improved market sentiment, Vijayakumar said, adding, "FIIs are likely to resume their equity purchases in India."
DII activity
DIIs also showed strong buying interest
Domestic Institutional Investors (DIIs) have also exhibited strong buying interest.
They purchased ₹7,277.74 crore worth stocks on May 9 when FIIs were selling, followed by inflows of ₹1,448.37 crore on May 12, ₹316.31 crore on May 14 and a whopping ₹5,187.09 crore on May 16.
Morningstar Investment's Associate Director - Manager Research, Himanshu Srivastava, explained, "Indian equity markets witnessed strong FII inflows this week as well, driven by global tailwinds and improving domestic fundamentals."
Market outlook
Market analysts highlight factors supporting positive sentiment
Vinod Nair, Head of Research at Geojit Investments, called the week "spectacular," adding that "major indices posted their strongest single-day gains in over four years."
He added that "key sectors such as defense, NBFCs, and automobiles significantly outperformed the broader market, driven by renewed investor confidence in an improving business outlook."
India's April inflation moderating to 3.2% from March's 3.3%, expectations of a normal monsoon, and declining crude oil prices supported this sentiment.