Following a 90 -day break in a reciprocal tariff announced by President Donald Trump. He has also reduced his pitch on China tariff while opposing the rhetoric about the federal reserve chair Jerome Powell. This has softened the Dollar Lar index and allowed FPI to find investment opportunities in emerging markets.
There are three more sessions pending in April and if FII continues their purchase trends, it is likely that a 3 -month sequential sales pattern break.
So far in 2025, FIIs have sold domestic shares of Rs 1,22,252 crore. They paid Rs. 78,027 crore shares, Rs 34,574 crore in February and Rs 3,973 crore in March.
On Friday, the FIISA was Rs. 2,952.33 crore shares were sold while domestic institutional investors (DIIs) cost Rs. There were net buyers at 3,539.85.
FIIs were selling seven times on a monthly basis in the financial year ended March 31, 2025. The highest exhibition of the flow was in October and January, while the FIIs cost Rs 94,017 crore and Rs. 78,027 crore shares were sold.
Commenting on FII action, Manoj Purohit, partner and leader, FS tax, tax and regulatory services, BDO Bharat said that foreign investors have emerged as net buyers in the last two weeks and made significant returns in Indian equity markets. “In the last seven trading sessions, Foreign Portfolio Investors (FPI) have become crucial on Indian equity,” he said. The shift is mostly attributed to a new understanding of USD Dollar Lar, Tariff Agreement and optimism around India’s economic road.
In their view, FPI flow is expected to remain strong in the near term, which provides additional support for the current market rally.
“As global investors have reconsidered their strategies, India’s economic fundamentals and potential status of earnings are the sons of stability and growth in global stormy incidents.
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