Mumbai, Feb 10 Foreign institutional investors (FIIs) became net buyers in Indian equities over the last nine trading sessions, purchasing more than $2 billion worth of shares supporting a rally, according to provisional data from exchanges.
On February 9, they bought shares worth Rs 2,223 crore on a provisional basis, according to exchange data.
However, experts cautioned it was too early to judge the medium‑term durability of the flow, adding that the trend could continue if trade stability persists, corporate earnings improve, and the dollar continues to weaken.
Domestic institutional investors (DIIs) were also active, purchasing equities worth more than Rs 8,973 crore over the same period.
DIIs holding a larger share than FIIs in the Nifty50 underscores a fundamental shift toward stronger domestic participation in India’s equity markets.
This reflects the growing strength of domestic capital pools. The change has been driven by sustained mutual fund SIP inflows, rising retail participation, and steady allocations from insurance and pension funds, even as FIIs turned cautious amid global macro uncertainty, elevated overseas rates, and a stronger dollar, said analysts.
“The increasing dominance of domestic money provides a more stable, long-term source of liquidity, reduces reliance on volatile foreign flows, and could help cushion markets during global risk-off phases, ultimately making India’s equity market structure more resilient and aligned with domestic growth fundamentals,” said Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India.
According to analysts, the renewed foreign interest followed a recent sell‑off that improved valuations relative to other Asian markets.
Further the framework for the India–US trade deal eased uncertainties, stabilised bond yields and bolstered risk appetite.
Benchmark indices Sensex and Nifty each rose over 3 per cent during the rally, while the BSE MidCap 150 and BSE SmallCap 250 surged around 5.66 per cent and 6.3 per cent, respectively.
Market participants pointed to the Reserve Bank of India’s dovish stance, improving GDP, robust earnings outlook and steady domestic flows as supporting forces in Indian markets that could attract foreign inflows.
A recent report from Motilal Oswal Securities showed that as of December 2025 quarter, domestic institutions held about 24.8 per cent of the Nifty50, marginally higher than foreign investors at around 24.3 per cent.
Analysts said the FII ownership marked an eight‑quarter low for foreign ownership, and a deepening domestic capital base, adding that the shift is structural rather than cyclical.
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