FIIs Bet Big On India: Equity Inflows Reach Rs 8,915 Crore In June So Far

This renewed interest comes as easing geopolitical tensions and falling crude oil prices create a favourable global investment environment.

The temporary ceasefire between Israel and Iran, coupled with a sharp drop in crude prices, triggered a global shift towards riskier assets, leading to a rally in equities across emerging markets.

Source : Freepik

Foreign Institutional Investors (FIIs) have emerged as net buyers in Indian equities this month, infusing Rs 8,915 crore into the markets till June 27, according to analysts.

This renewed interest comes as easing geopolitical tensions and falling crude oil prices create a favourable global investment environment.

The temporary ceasefire between Israel and Iran, coupled with a sharp drop in crude prices, triggered a global shift towards riskier assets, leading to a rally in equities across emerging markets. Simultaneously, the dollar index slid below the 97-mark, making investments in these regions more attractive, reported IANS.

“Declining dollar is always a positive for emerging market equity; this encouraged FIIs to buy in India,” noted Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Large-Caps Drive Rally as FIIs Focus on Select Sectors

FIIs focused their buying in sectors such as financials, capital goods, and real estate, while they exited positions in FMCG, consumer durables, and IT. This shift in investment preference has significantly bolstered large-cap stocks, propelling key benchmarks like the Sensex and Nifty to record levels in 2025.

Despite the bullish momentum in equities, FIIs maintained a selling trend in the bond market, a move analysts attribute to the narrowing yield differential between Indian and US government securities.

“High valuations can attract profit booking,” cautioned Vijayakumar, adding that while liquidity and positive investor sentiment may sustain the rally, rich valuations could limit further upside.

Domestic Strength Supports Market Optimism

India's economic fundamentals continue to provide a strong anchor for investor confidence. Manoj Purohit, Partner and Leader, Financial Services Tax at BDO India, emphasised that regulatory authorities, particularly SEBI, have played a key role in shaping a transparent and accessible market environment. “India’s economy continues to stand out as one of the world’s fastest growing and most resilient,” he said.

Markets also drew strength from supportive domestic indicators, including progress in monsoon activity, muted oil prices, and macroeconomic stability. “On the domestic front, progress in the monsoon, subdued crude oil prices, and stable macroeconomic indicators supported the bullish undertone. FII inflows accelerated, with over Rs 12,000 crore infused in a single day, further strengthening market sentiment,” said Ajit Mishra, SVP – Research at Religare Broking.