Foreign institutional investors (FIIs) are showing early signs of easing their relentless selling in Indian equities, following a massive $60 billion exodus since the market peaked in September 2024.
The deceleration in outflows coincides with a broader cooling of geopolitical tensions, particularly after a recent ceasefire agreement between the US and Iran, which has helped stabilize risk sentiment across emerging markets.
The shift in flow dynamics marks a notable change from the previous year, during which FIIs consistently drained capital from Indian stocks.
While the absolute volume of selling has not yet reversed into net buying, the pace of withdrawal has moderated significantly.
This easing of pressure provides a reprieve for Indian equity indices, which have faced volatility driven by foreign capital flight and elevated crude oil prices.
Market participants are closely watching whether this moderation in selling can transition into sustained net inflows.