FIIs Return: ₹1,350 Cr Inflow in Indian Equities After Prolonged Selling

• Foreign Institutional Investors (FIIs) became net buyers, investing ₹1,350 crore in Indian equities in a week after consistent selling.
• FIIs had withdrawn over ₹1.55 lakh crore in 2025 due to a weak rupee, high valuations, and sluggish corporate earnings.
• The sentiment shifted in the third week of December, with FIIs buying ₹1,346 crore in three trading sessions.
• Rupee's recovery post-RBI intervention, attractive valuations in banking/IT, and softening US bond yields are key reasons for the return.
• Analysts are cautiously optimistic, expecting a gradual FII return, especially if global interest rates are cut and the dollar weakens.

Why It Matters: FIIs show renewed confidence in Indian equities with fresh investments after a challenging 2025.