Foreign institutional investors (FIIs) made a strong comeback by investing nearly ₹15,000 crore in the Indian stock market over three trading sessions, reversing a nine-day sell-off. This surge boosted the Sensex to its sharpest recent rebound, with the index gaining almost 3,400 points in a short period.
Dr. VK Vijayakumar from Geojit Financial Services credits the FII comeback to two key factors: a weakening dollar index redirecting investors to emerging markets, particularly India. Unlike the US and China facing sluggish growth, India is anticipated to reach a strong 6% GDP growth in FY26.
Despite recent investments, FIIs remain net sellers in April, with outflows exceeding ₹18,000 crore. Jitendra Gohil of Kotak Alternate Asset Managers suggests that if the dollar index falls, FIIs may show more interest in emerging markets. He notes that India’s outlook is comparatively strong and attractive among its peers in these markets.
The Indian rupee strengthened by 31 paise to reach ₹85.37 against the US dollar on Friday, marking its highest closing since April 4, due to foreign capital influx. Sumit Jain from ASK Investment Managers observed that redemptions from emerging markets increased after Trump’s win in October 2024. However, India stands out positively now with stable flows, supported by its robust domestic market and growth fundamentals.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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