The turnaround has been following a 90-day pause in reciprocal tariffs announced by President Donald Trump. He has also lowered his pitch on China tariffs while reversing his rhetoric on sacking Federal Reserve Chair Jerome Powell. That has softened the dollar index and allowed FPIs to look for investment opportunities in emerging markets.
There are three more sessions left in April and if FIIs continue their buying trends, it is likely that the 3-months successive selling pattern breaks.
In 2025 so far, FIIs have sold domestic shares worth Rs 1,22,252 crore. They sold shares worth Rs 78,027 crore in January, Rs 34,574 crore in February and Rs 3,973 crore in March.
On Friday, FIIs sold shares worth Rs 2,952.33 crore while the domestic institutional investors (DIIs) were net buyers at Rs 3,539.85.
The FIIs were sellers seven times on a monthly basis in the financial year that ended on March 31, 2025. The highest exodus of flows happened in October and January when the FIIs sold shares worth Rs 94,017 crore and Rs 78,027 crore, respectively. Commenting on the FII action, Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India said that the foreign investors have made a notable return to Indian equity markets, emerging as net buyers over the past two weeks. “In just the last seven trading sessions, foreign portfolio investors (FPIs) have turned decisively positive on Indian equities. This shift is largely attributed to a weakening US dollar , revisit of tariff agreements and a renewed sense of optimism surrounding India’s economic trajectory,” he said.In his view, FPI inflows are expected to remain strong in the near term, providing additional support to the ongoing market rally.
“As global investors reassess their strategies, India’s economic fundamentals and earnings potential position it as a beacon of stability and growth in turbulent events happening globally. All eyes now on India’s stance on further negotiation on tariff agreements which might direct the next few trading cycles in the coming weeks,” Purohit said.
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