FII Activity: Strong Inflows Signal Renewed Optimism

Foreign Institutional Investors (FIIs) have continued their strong buying streak in Indian equities, with net inflows of ₹23,778 crore as of May 16, 2025. This marks a sharp reversal from the first quarter of 2025, when FIIs were net sellers to the tune of ₹1.16 lakh crore. The trend shifted in April with inflows of ₹4,243 crore, gaining momentum in May. following a pause in the US-China trade war and easing India-Pakistan tensions—has boosted investor confidence. While growth remains sluggish in major economies like the US, China, Japan, and the EU, India is projected to grow above 6% in FY26. With inflation under control and further rate cuts expected by the RBI, India’s macro outlook remains favorable. “FIIs are likely to continue their buying, supporting resilience in large-cap stocks.