Foreign Investors Pour Over $1.2 Billion into Indian Equities in Single-Day Buying Spree

On a day when the Indian stock market showed volatility, Foreign Portfolio Investors (FPIs) displayed robust buying activity, acquiring equities valued at $1.2 billion (approximately ₹10,340 crore). This represented the second-largest single-day purchase by FPIs in 2025, highlighting a renewed confidence in the Indian market. The buying spree was fueled by optimism surrounding potential trade agreements between the United States and India, as well as indications that India might reduce its imports of Russian oil. Domestic Institutional Investors (DIIs) also contributed positively by maintaining a net buying position, adding ₹1,082 crore worth of shares. This substantial inflow marks a significant reversal from the heavy selling observed in the preceding three months, where FPIs had offloaded a total of $9.3 billion in the third quarter.

The shift in sentiment is also reflected in FPIs' positions in NSE index futures, where short positions have decreased. Experts suggest that FPI underweight positions may have reached their limit, indicating a potential for continued return. The strong buying activity also provided support to the Indian Rupee, which appreciated against the US dollar. Separately, a significant bulk deal occurred in Aditya Birla Capital Ltd, involving the sale of approximately 2% of its equity for ₹1,639 crore, with notable institutional participation.

Impact: This news is highly impactful for the Indian stock market as large FPI inflows typically boost market sentiment, increase liquidity, and can lead to stock price appreciation. The scale of the buying, especially after a period of outflows, signals strong foreign investor confidence in India's economic prospects. Rating: 9/10.

Difficult Terms: Foreign Portfolio Investors (FPIs): Investors who invest in the financial assets of a country without taking direct ownership or control of the business, such as buying stocks or bonds. Nifty 50: A benchmark stock market index in India that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange. Domestic Institutional Investors (DIIs): Indian financial institutions such as mutual funds, insurance companies, and pension funds that invest domestically. NSE Index Futures: Contracts that allow traders to speculate on or hedge against the future movement of a stock market index, like the Nifty 50. Bulk Deal: A significant transaction of shares, typically involving a large quantity, executed on a stock exchange at a single specified price.