Key Points

In January, February, and March, they have been net sellers all through. Since April, they turned net buyers in Indian equities.

Latest data made available by National Securities Depository Limited (NSDL) showed that FPIs had bought stocks worth Rs 8,915 crore in June so far. In April and May, the FPIs had accumulated stocks worth Rs 4,223 crore and Rs 19,860 crore, respectively.

FPIs had fueled the latest bull run in the stock market, after a sharp slump.

As per definition, Foreign Portfolio Investment involves an investor buying foreign financial assets.

"Declining dollar is always a positive for emerging market equity; this encouraged FIIs to buy in India. FII buy figure for June, including buying through the exchange and primary market and others category, through 27th stood at Rs 8915 crores," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

"FIIs were buyers in financials, capital goods and realty stocks and were sellers in FMCG, consumer durables and IT. FII buying has imparted strength to largecaps helping the Nifty and Sensex to scale new highs for 2025. FIIs continued selling in the bond market and this trend is likely to continue given the low yield differential between US and Indian bonds. Ample liquidity and investor optimism have the potential to sustain the rally. However, high valuations are a limiting factor. High valuations can attract profit booking," Vijayakumar added.

The benchmark Sensex is now about 2,000 points below its all-time high of 85,978 points. At one time, the Sensex had fallen about 13,000 points from its high. The FPI buying has supported the indices of late.

Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs, as July 9 deadline nears.

A comfortable inflation number in India also somewhat supported the domestic equity indices.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

- ANI