FIIs end 9-day selling streak, buy ₹6,065 cr in Indian equities amid tariff volatility: Report

This is the third-largest single-day inflow so far in 2025, after ₹11,111.25 crore on March 27 and ₹7,470.36 crore on March 21.

In contrast, domestic institutional investors booked profits, selling ₹1,951.6 crore worth of stocks on the same day.

Heavy outflows earlier in April, driven by global risks

Until April 11, FIIs had offloaded nearly ₹35,000 crore in Indian equities, while domestic investors absorbed much of the selling pressure, investing ₹27,600 crore during the same period.

These movements came against a backdrop of heightened global anxiety, triggered in part by U.S. President Donald Trump’s tariff measures—later delayed by 90 days—that shook most global markets, including India.

Analysts warn of continued volatility in FII flows

Market experts caution against reading too much into the recent rebound. "Some of the buying could be short covering," said an analyst at a domestic brokerage, noting that FIIs have maintained a cautious stance on India for several months, occasionally interspersed with selective buying.

₹3.47 trillion outflow since Oct 2024

Global investors have remained net sellers since October 2024, citing high stock valuations and persistent worries about global growth.

Concerns were further stoked by China’s uneven economic stimulus and Trump’s tariff actions. Data shows that since October, global funds have offloaded Indian equities worth ₹3.47 trillion.

Tariff fears, mineral probe shift investor sentiment

The sell-off in recent weeks reflects a global tilt toward safe-haven assets as trade war tensions intensify. In the latest twist, Trump has launched a probe into critical minerals imports and slapped a 245 percent tariff on certain Chinese goods, even as he urged Beijing to initiate talks to defuse tensions.

India relatively resilient amid global headwinds

Despite these challenges, analysts had earlier said India was better positioned than many of its Asian peers when Trump first proposed his “reciprocal” tariffs, due to its stronger macro fundamentals, solid growth outlook, and a recent correction in stock valuations.

These factors could prompt a renewed FII interest in Indian markets over the long term.

Dollar index dip may be attracting FII money to Ems

The U.S. dollar index, which measures the greenback against a basket of six major currencies, has slipped below 100 for the first time since July 2023.

Currently hovering around 99.5—its lowest since April 2022—the index has dropped over 10.6 per cent from its January peak of 110.

Analysts believe the weakening dollar may be pushing FIIs to reallocate capital to emerging markets like India.