FIIs inject ₹15,000 crore into Indian equities in 3 days
What's the story
In a major comeback, foreign institutional investors (FIIs) have pumped in nearly ₹15,000 crore in the Indian stock market in just three trading sessions.
The surge, which comes after nine days of continuous selling, has pushed the Sensex to its sharpest rebound in recent days.
The index has gained almost 3,400 points in this short period.
Market analysis
What is bringing FIIs to India?
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributes the FII resurgence to two main factors.
The dollar index has fallen to around the 100 mark, leading investors away from the US and toward emerging markets like India.
Additionally, while both the US and China are expected to show slow growth this year, India is projected to achieve a 6% GDP growth rate in FY26.
Investment trends
FII focus shifts to domestic consumption-driven themes
Despite the recent surge in investments, FIIs continue to be net sellers in April with total outflows of over ₹18,000 crore for the month.
Jitendra Gohil from Kotak Alternate Asset Managers says if the dollar index continues to fall, FII interest in emerging markets will likely pick up.
He also says India's outlook remains relatively strong and appealing compared to its peers within these markets.
Currency performance
Indian rupee strengthens amid equity inflows
The Indian rupee has also gained from this foreign capital influx, appreciating 31 paise to settle at ₹85.37 against the US dollar on Friday. This is its strongest closing since April 4.
Sumit Jain from ASK Investment Managers notes that redemptions from emerging markets had started post-October 2024 after Trump's victory.
But flows are now stabilizing with India emerging as a promising exception with its strong domestic market and growth fundamentals.