FIIs Make A Stunning Comeback On Dalal Street, ₹45,960 Crore Inflows Fuel Nifty Rally As Global Investors Turn To India
· Free Press Journal
Mumbai: Foreign institutional investors (FIIs) have returned to Indian equities with aggressive buying, injecting Rs 45,960 crore during the week ended November 6. The sharp reversal has strengthened market sentiment after months of sustained foreign outflows.
The renewed interest helped the Nifty 50 surge 8.58 percent during the week, reclaiming the crucial 25,000 level amid improving domestic fundamentals and shifting global investment preferences.
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Foreign Buying Accelerates
The latest weekly inflows exceeded October's entire FII withdrawal of ₹45,162 crore, signalling a significant change in investor positioning.
Foreign investors purchased equities worth approximately ₹14,975 crore on November 5 and ₹13,750 crore on November 6, providing momentum to the market recovery.
Meanwhile, domestic institutional investors (DIIs) turned net sellers, offloading shares worth ₹24,197 crore during the week.
India's Growth Advantage
India's relatively diversified economy is emerging as an attraction for global investors seeking alternatives to technology-heavy markets.
Unlike economies dependent on semiconductor exports, India's growth is supported by domestic consumption, banking, infrastructure and manufacturing.
The Reserve Bank of India's GDP growth projection of 7.1 per cent for FY27 further reinforces confidence in the country's economic prospects.
Oil Prices Offer Relief
Declining international crude oil prices have provided another positive trigger for Indian equities.
Rupee Strengthens To 94.61 Against US Dollar As Global Currency Trends Turn Favourable, Softer Crude Oil Prices And ₹6,836 Crore FII Buying Provide Fresh SupportLower energy costs could ease inflation, support corporate profitability and reduce India's import burden.
Meanwhile, concerns over expensive artificial intelligence stocks and global market volatility have encouraged investors to reassess portfolio allocations.
Can Momentum Continue?
Market experts remain cautious about declaring a sustained turnaround despite the impressive recovery.
Karnataka Bank Shares Near 52-Week High, FII-DII Holdings Rise To Four-Year High As Q2 Profit Jumps 37%Future FII investments will depend on corporate earnings, global interest rates, currency stability and geopolitical developments.
Nevertheless, the strong comeback highlights India's renewed appeal as a destination for international capital.
Sustained foreign participation, alongside resilient domestic demand, could provide additional support to Indian equities in the coming weeks.