Foreign Institutional Investors (FIIs) have maintained their buying trend in Indian equities, with purchases reaching Rs 23,778 crore by May 16, 2025. This follows a strategic shift in April when FIIs moved from being net sellers to buyers, recording net purchases of Rs 4,243 crore.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted a significant change in FII activities during the second quarter of 2025. He highlighted that FIIs, who sold equities worth Rs 116,574 crore in the first three months of the year, became net buyers in April.
According to Dr. Vijayakumar, the buying momentum accelerated in May, driven by diminishing geopolitical tensions and stabilizing macroeconomic conditions. He stated that this change from selling to buying became more pronounced in May with substantial purchases totaling Rs 23,778 crore.
Recent inflows have occurred in the backdrop of improving global trade relations, particularly after the pause in the US-China trade conflict and the resolution of India-Pakistan border tensions. Vijayakumar remarked on the enhanced investment scenario following these developments.
Despite challenges faced by major economies such as the US, China, Japan, and the EU, India’s growth prospects remain strong, with an anticipated growth rate exceeding 6% in FY26.
Vijayakumar emphasized the favorable domestic macro environment, noting that with inflation in India well-controlled and the Monetary Policy Committee expected to cut rates further, the macroeconomic setup is promising. He anticipates continued buying interest from FIIs and resilience in large-cap stocks.
These strong inflows reflect growing investor confidence in India’s economic stability, potentially bolstering the ongoing market rally.
