FIIs shift gears, invest ₹40,145cr in Indian equities
What's the story
Foreign Institutional Investors (FIIs) have made a remarkable shift from net sellers to net buyers in the Indian equities market.
In the last 12 trading days, they have invested ₹40,145 crore.
This shift is largely due to President Donald Trump's announcement of a 90-day pause in reciprocal tariffs and the weakening US dollar's impact on emerging markets like India.
Despite this positive trend, modest earnings growth of around 5% in FY25 may constrain future FII inflows.
Strategy change
FIIs' investment strategy shifts
In April alone, FIIs pumped ₹3,243 crore into Indian equities. This was a significant departure from their earlier approach of continuous selling in the first quarter of calendar year 2025.
During those three months, they had offloaded equities worth ₹1,29,680 crore. However, this trend reversed in April with a massive surge in buying activity.
Sustained buying
Stark change in FII behavior
Confirming that the shift from selling to buying continued for the week ending May 2, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "During the last 12 trading days, FIIs have been sustained buyers in the cash market."
This marks a stark change in FII behavior after they had been consistently selling earlier this year.