Foreign Institutional Investors (FIIs) have pumped in over ₹16,400 crore into Indian equities this week.
The massive investment comes after a major sell-off on May 9 amid increased tensions between India and Pakistan.
According to stock exchanges’ data, FIIs bought Indian stocks worth ₹5,392.94 crore on May 15 and ₹8,831.05 crore on May 16 after modest inflows of ₹1,246.48 crore on May 12 and ₹931.80 crore on May 14.
FIIs’ sustained buying trend noted by experts
Investment insights
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, emphasized the recent trend of sustained buying by FIIs.
He said, “FIIs bought equity through the exchanges consecutively for 16 trading days ending 8th May for a cumulative amount of ₹48,533 crore.”
The India-Pakistan ceasefire has greatly improved market sentiment, Vijayakumar said, adding, “FIIs are likely to resume their equity purchases in India.”
DIIs also showed strong buying interest
DII activity
Domestic Institutional Investors (DIIs) have also exhibited strong buying interest.
They purchased ₹7,277.74 crore worth stocks on May 9 when FIIs were selling, followed by inflows of ₹1,448.37 crore on May 12, ₹316.31 crore on May 14 and a whopping ₹5,187.09 crore on May 16.
Morningstar Investment’s Associate Director – Manager Research, Himanshu Srivastava, explained, “Indian equity markets witnessed strong FII inflows this week as well, driven by global tailwinds and improving domestic fundamentals.”