Swift Summary
- Foreign institutional investors (FIIs) have resumed critically important purchases in the Indian stock market,investing ₹23,778 crore up till May 16,2025.
- FIIs changed their approach in April 2025 after selling ₹116,574 crore of equities during the first quarter. In April alone, they purchased shares worth ₹4,243 crore.
- Dr. V.K. Vijaykumar of Geojit Investments attributed this shift to reduced geopolitical tensions and stabilized global economic conditions.
- Growth expectations for India remain strong with projections of a GDP growth rate above 6% for FY 2026 amid lower inflation and potential easing interest rates.
- Improved global trade relations-particularly between the U.S.-China-and reduced border tensions between India-Pakistan have also supported positive investment sentiments toward India.
Indian Opinion Analysis
The renewed focus by FIIs on Indian stock markets reflects growing investor confidence in India’s economic stability and growth prospects. Key factors influencing this include better geopolitical relations globally-especially the pause in U.S.-China trade disputes-and domestic factors like controlled inflation levels and policy optimism about interest rates.
This momentum could strengthen India’s positioning as a preferred investment destination amidst challenges faced by larger economies such as the U.S., China, Japan, and EU nations. Though, fostering consistent trust from foreign investors will require maintaining macroeconomic stability while navigating potential shifts within global financial dynamics.
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