The info was highlighted by Dr. VK Vijayakumar, Chief Funding Strategist at Geojit Investments Restricted, who noticed a marked change in FII habits in the course of 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, in response to him, has accelerated additional in Might, pushed by easing geopolitical tensions and stabilizing macroeconomic situations.
“This alteration in FII technique from promoting to purchasing accelerated in Might with large shopping for of 23,778 crores by way of sixteenth Might,” 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 situation bettering after the pause in commerce conflict between the US and China and the tip of the India-Pak battle, the funding situation has improved,” Vijayakumar famous.Regardless of challenges in main economies just like the US, China, Japan, and the EU, India’s progress prospects stay sturdy, with the nation anticipated to clock a progress price of above 6% in FY26.
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Highlighting the favorable home macro surroundings, 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 seems 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. Due to this fact, massive caps shall be resilient.”
The sturdy inflows sign rising investor confidence in India’s financial stability, doubtlessly offering additional help to the continuing market rally.
(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t signify the views of The Financial Occasions)
