Foreign institutional investors (FII) infused more than ₹ 16,400 million rupees in Indian shares this week, marking a significant change after their mass sale on May 9 when India-Pakistan tensions intensified.
The data exchanges data revealed that the FII bought Indian shares worth ₹ 5,392.94 million rupees on May 15 and ₹ 8,831.05 million rupees on May 16, after modest tickets of ₹ 1,246.80 million 3.798.71 million rupees on May 9.
According to Dr. VK Vijayakumar, Estratega Head of Investment of Geojit Investments Limited, “the distinctive seal of FPI investment in recent days has been the sustained purchase by FIIS.
The high fire agreement between neighbors with nuclear weapons India and Pakistan has significantly improved the feeling of the market. “Now that the high fire has declared the legs, they are likely to resume their capital purchase in India,” Vijayakumar added.
Shrikant Chouhan, head of Equity Research at Kotak Securities, confirmed that “the FIIs continued to be a net cash buyers for a sum of ₹ 14,951.59 million rupees, to date in May 255”. He attributed the positive performance of the market to “expectations of a constant reduction or American tariffs after the commercial agreement between the United States and the United Kingdom.”
National Institutional Investors (DIIS) also demonstrated a strong purchase interest, with purchases worth ₹ 7,277.74 million rupees on May 9 when FII were sold, followed by tickets of ₹ 1,448.37 million rupees on May 12, ₹ 316 ₹ 5,187.09 crore on May 16.
Himanshu Srivastava, associate director – Research of the Morningstar Investment manager, explained that “Indian capital markets also witnesses strong entries of FII this week, promoted by a combination of global tail winds and improving the national specials that reflected the renewed confidence of investors.”
Vinod Nair, head of Research of Geojit Investments Limited, described the week as “spectacular”, noting that “the main indices recorded their strongest profits of a single day in approximately four years.” He stressed that “the key sectors such as defense, NBFCs and cars significantly exceeded the broader market, driven by renewed investor confidence in an improvement in commercial perspective.”
Market analysts point out multiple factors that support positive feeling. April inflation of India moderated 3.2 percent from 3.3 percent in March, marking the lowest reading in six years. It is anticipated that the expectations of a normal monsoon and the decrease in crude oil prices further relieve inflationary pressures, allowing the Indian reserve bank to maintain its accompanied monetary policy position.
Hardik Matalia, an analyst derived from Choice Broking, said Fii had been net buyers during sixteen consecutive sessions before turning net sellers on May 9.
However, experts warn that FII’s entrance pattern could remain volatile. Chouhan warned that “FPI flows are expected to remain volatile,” while Srivastava said that “improving the commercial relations of the United States and China can lead the FIIs to recondition their investment, Potntiax diverts funds to other markets.”
The global risk appetite has improved after a 90 -day tariff truce between the United States and China, promising foreign investors to gather capital towards emerging markets, with India being a key beneficiary.
Meanwhile, retail investors, categorized as “customers” in EEB data, continued their net sales trend, downloading shares worth ₹ 876.37 million rupees on May 15 and ₹ 529.64 million rupees on May 16. The owners of the week of the negotiation week of the injection week of a start network.
Looking to the future, investors will closely monitor the next data from Indian PMIs and US unemployment claims. UU. To evaluate the impulse of economic recovery both nationally and global.
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Posted on May 17, 2025
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