FIIs flip web consumers of Indian shares, first time in 4 months

Overseas institutional traders (FII) turned web consumers for the primary time in 4 months, investing ₹4,223 crore in Indian shares in April 2025.

FIIs have been web sellers in seven months in fiscal 2025, and the outflows elevated considerably after October 2024, when the overseas traders offered fairness value virtually ₹1 lakh crore.

The information comes amid volatility in international markets after U.S. President Donald Trump’s tariff announcement. Overseas funds purchased debt securities and offered equities in March 2025 and this pattern reversed in April. The rise in overseas inflows in equities assumes significance following the 90-day pause on U.S. tariffs till July 9. U.S. Treasury Secretary Scott Bessent had mentioned just lately that India could also be among the many first few nations to seal a commerce take care of the U.S.

The optimism of overseas funds was “primarily due to the greenback index, which was round some 105, 104 ranges, happening to 100 or 99, and our forex additionally comparatively did a lot better,” mentioned Shrikanth Chouhan, head of analysis at Kotak Securities. A big part of those overseas funding inflows have been into banking, monetary companies and insurance coverage due to the RBI’s accommodative stance and decreasing publicity to IT in concern of U.S. recession hitting their earnings.

Rupee’s greatest acquire

In the meantime, the rupee on Wednesday witnessed its most vital single-day appreciation since November 2022 by gaining 42 paisa towards the U.S. greenback.

“This surge will be attributed to month-end changes and a technical sell-off within the U.S. greenback main as much as the vacation. Regardless of prevailing geopolitical tensions, dealer warning was considerably offset by the Reserve Financial institution of India’s obvious absence from the market and the strengthening of different Asian currencies, offering help to the rupee,” mentioned Dilip Parmar – Senior Analysis Analyst, HDFC Securities.

“Wanting forward within the close to time period, the spot U.S. Greenback/Indian Rupee pair finds help across the 84.10 degree and faces resistance close to 85.50. The present bias seems to favour additional strengthening of the rupee,” he added..