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Foreign investors are back—and they’re buying big.
After six straight months of selling, FIIs have flipped the script, pumping $1.39 billion into Indian equities this week, the highest among all Asian markets.
Since March 20, they’ve poured in $2.4 billion, reversing $28.2 billion in outflows since September. The turnaround comes as valuations cool off, RBI liquidity improves, and hopes of an April rate cut lift sentiment.
Worth noting: while India saw strong inflows, other Asian markets struggled. Taiwan witnessed $298 million in outflows, followed by Malaysia and Thailand. Only South Korea and Indonesia saw marginal gains.
Why does this matter: when FIIs buy, markets tend to move. Their capital sends a signal to domestic investors, who often follow the trend.
FIIs have always been market makers in India. In bull years like 2014 and 2020, their aggressive buying lifted indices to new highs. But during global shocks like 2008 or the early COVID wave, their exit caused deep market cuts.
What’s changed: the rise of Domestic Institutional Investors (DIIs) as a counterweight to FIIs. Mutual funds and insurers have stepped up with steady inflows, even during volatile phases. In 2022 alone, DIIs pumped in ₹2.76 lakh crore, cushioning market shocks.
As both global and domestic investors line up behind Indian equities, the market may be gearing up for its next leg higher.
