Mumbai: The foreign institutional investors’ (FIIs) buying, through the exchange and primary market and others category, stood at Rs 8,915 crore this month (till June 27), analysts said on Sunday.
Ceasefire between Israel and Iran and the sharp decline in crude triggered a risk-on in global equity markets. Along with this favourable investment scenario, dollar continued to decline and the dollar index dipped to sub-97 level.
“Declining dollar is always a positive for emerging market equity; this encouraged FIIs to buy in India,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
FIIs were buyers in financials, capital goods and realty stocks and were sellers in FMCG, consumer durables and IT.
According to analysts, FII buying has imparted strength to large-caps helping the Nifty and Sensex to scale new highs for 2025.
FIIs continued selling in the bond market and this trend is likely to continue given the low yield differential between US and Indian bonds.
Ample liquidity and investor optimism have the potential to sustain the rally. However, high valuations are a limiting factor. High valuations can attract profit booking, said Vijayakumar.
India’s economy continues to stand out as one of the world’s fastest growing and most resilient, backed by strong macroeconomic fundamentals and a vibrant policy landscape.
The nation’s regulatory institutions, led by SEBI, have consistently pursued reforms aimed at deepening market participation, enhancing transparency, and simplifying compliance to attract global capital, according to Manoj Purohit, Partner and Leader, Financial Services Tax, Tax and Regulatory Services, BDO India.
The market rally last week was underpinned by a combination of easing Middle East tensions and a strong rebound in FII inflows.
“On the domestic front, progress in the monsoon, subdued crude oil prices, and stable macroeconomic indicators supported the bullish undertone. FII inflows accelerated, with over Rs 12,000 crore infused in a single day, further strengthening market sentiment.,” said Ajit Mishra–SVP, Research, Religare Broking Ltd.
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