FIIs Return As Strong Buyers; Cash Market Inflows Hit Three-Month High

Foreign Institutional Investors (FIIs) staged a strong comeback in Indian equities, turning net buyers after two consecutive sessions of selling. Provisional data for Tuesday showed FIIs purchasing shares worth Rs 5,236 crore, marking their highest single-day cash market buying since October 28.

Domestic Institutional Investors also remained supportive of the market, with net purchases worth Rs 1,014 crore on the same day, adding to the overall positive sentiment.

FIIs' cash market buying of over Rs 5,200 crore represents a three-month high and signals a sharp improvement in risk appetite. Notably, the buying was broad-based, with no major block deals influencing the inflows, indicating genuine institutional participation rather than one-off transactions.

Markets Cheer US-India Trade Deal

The renewed buying interest followed the announcement of the US-India trade deal on Monday, which acted as a major trigger for market optimism. The agreement boosted expectations of improved trade flows, lower tariff-related risks, and stronger earnings visibility for export-oriented sectors.

Equity markets reacted sharply to the positive development. The Nifty 50 closed firmly in the green, surging more than 2.5% to end above the 25,700 mark. This was the index's biggest single-day gain since May 2025, reflecting strong risk-on sentiment across sectors.

Alongside FIIs, consistent buying by DIIs helped lend stability to the rally. Domestic institutions have continued to act as a counterbalance during periods of foreign outflows, and their participation reinforced confidence in the durability of the day's move.

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