The information was highlighted by Dr. VK Vijayakumar, Chief Funding Strategist at Geojit Investments Restricted, who noticed a marked change in FII conduct through the second quarter of 2025.
Dr. VK Vijayakumar, Chief Funding Strategist at Geojit Investments, identified that “FIIs who have been sellers within the first three months of 2025, having bought fairness for Rs 116,574 crores throughout this era, turned patrons in April with purchase determine of Rs 4,243 crores.”
The shopping for momentum, based on him, has accelerated additional in Could, pushed by easing geopolitical tensions and stabilizing macroeconomic situations.
“This modification in FII technique from promoting to purchasing accelerated in Could with massive shopping for of 23,778 crores by way of sixteenth Could,” he added.
The current inflows come amid bettering commerce relations globally, notably following the pause within the US-China commerce battle and the decision of the India-Pakistan border tensions.“With the worldwide commerce state of affairs bettering after the pause in commerce battle between the US and China and the top of the India-Pak battle, the funding state of affairs has improved,” Vijayakumar famous.Regardless of challenges in main economies just like the US, China, Japan, and the EU, India’s progress prospects stay strong, with the nation anticipated to clock a progress price of above 6% in FY26.
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Highlighting the favorable home macro setting, Vijayakumar said, “Importantly, with inflation in India very a lot underneath management and the MPC anticipated to chop charges twice or thrice extra on this rate-cutting cycle, the macro assemble in India appears to be like good.”
With the expectation of additional price cuts and continued shopping for curiosity from FIIs, Dr. Vijayakumar anticipates that “going ahead, FIIs are more likely to proceed their shopping for in India. Subsequently, giant caps can be resilient.”
The robust inflows sign rising investor confidence in India’s financial stability, probably offering additional assist to the continued market rally.
(Disclaimer: Suggestions, options, views and opinions given by the consultants are their very own. These don’t symbolize the views of The Financial Occasions)
