FIIs News: Foreign investors took full advantage of the boom in the market, bought shares worth 2 billion dollars in 5 sessions

After continuous selling since October 2024, foreign investors (FIIs) have started investing in Indian stocks again. They invested more than $2 billion in the last five trading days. According to NSDL data, FIIs invested more than $1.9 billion between April 15 and 21. According to preliminary data from NSE, another Rs 1,290 crore was infused on April 22.

This purchase is different from the previous months, when FIIs were mostly selling. The last time they bought $1.8 billion was in December. So far this month, FIIs have sold $2 billion.

Where is the trend moving?
At the end of March also, there was a purchase of $3.6 billion between March 20-27, but later the selling started again. The market is now watching whether this buying will continue. Experts say that this change is related to global economic trends. Investors are cautious due to trade tensions between the US and China. They are moving towards Europe, emerging markets and safe investments like gold and silver.

Why are investors exiting US assets?
The US dollar has weakened in the last few weeks. Usually a weak dollar increases investment in emerging markets, as investors want higher returns. But this time the US bond yield has also increased, due to which investors are exiting US assets. The reason for this is concerns about tariffs, economic slowdown, low income and rising inflation. RBI's recent steps, attractive value of shares after reforms and strong economic condition have made the Indian market more attractive. Trump's softness brought back the boom in the markets . Quoting Pramod Gubbi, co-founder of Marcellus Investment, Moneycontrol said in its report that the stability of FII investment will depend on global trade policies, which are still uncertain. On April 9, when former US President Trump announced the removal of tariffs for all countries except China, the Indian stock market boomed. Sensex and Nifty rose 9-10%, while mid and smallcap indices rose more than 11%. Quoting another expert, this report said that FII buying in FY26 is happening in anticipation of stable policies, tax exemption and reduction in interest rates. This will increase consumption and strengthen the earnings of companies in FY26. From October 2024 to March 2025, FIIs had sold more than Rs 2.33 lakh crore, as stock prices were high, earnings were low and economic growth was slow. Devarshi Vakil of HDFC Securities said that this investment is permanent and may continue in the future. Investors are especially showing interest in banking, finance, defense and consumer stocks.

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