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Below the Quote on Market from Vipul Bhowar, Senior Director - Listed Investments, Waterfield Advisors

"Following a record sell-off in early 2025, which resulted in the loss of $1.3 trillion from India’s market capitalisation, Foreign Institutional Investors (FIIs) mounted a significant comeback in May 2025, injecting Rs 20,000 crore (approximately $2.4 billion) over a span of two months.

The decrease in the Dollar Index, anticipated reductions in the interest rates set by the Reserve Bank of India (RBI), combined with a stable economic environment, controlled inflation, lower crude oil prices, and favorable corporate earnings, is further supported by the alleviation of global trade tensions and more appealing valuations have led to a FII comeback.

While global volatility and valuation fluctuations may induce occasional outflows, India’s GDP growth of 7.4% in the fourth quarter of FY25, exceeding estimates, has reinforced confidence in a revival of corporate earnings, which should encourage foreign institutional investors (FIIs) to re-enter the market."

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