India’s stock market has found its footing with foreign institutional investors (FIIs) returning aggressively, buying more than $2 billion over nine sessions. This, alongside robust domestic support, has propelled a vigorous upswing, highlighting the market’s growing self-reliance.
FIIs net invested Rs 2,223 crore on February 9, exchange records confirm. Experts flag conditions like even global trade, earnings recovery, and dollar weakness for prolonged flows. DIIs countered with Rs 8,973 crore in buys, now surpassing FIIs in Nifty 50 holdings via SIPs, retail growth, and fund consistency.
A strong dollar and global rate pressures had tempered FII enthusiasm before. As per Himanshu Shrivastava at Morningstar, “Domestic capital ensures resilience, lessening exposure to foreign flux and global crises.”
Cheaper Indian stocks versus Asian markets post-selloff, plus US trade clarity, fuel the FII rush. Indices roared: Sensex/Nifty over 3% up, midcaps 5.66%, smallcaps 6.3%. RBI leniency, GDP momentum, profit optimism, and local liquidity are magnets. Motilal Oswal notes DIIs at 24.8% Nifty share (Dec 2025), ahead of FIIs’ 24.3%—a lasting rebalance for stability.