Foreign Institutional Investors (FIIs) have demonstrated a remarkable turnaround, recording net buying for three consecutive days in April with total inflows of ₹1,731.71 crore. According to latest data, FIIs invested ₹683.20 crore on April 17, followed by ₹382.36 crore on April 16, and ₹666.15 crore on April 15 in the cash market. This represents a significant shift from their consistent selling pattern throughout 2026, with experts noting that following February 25 when they bought ₹2,991.64 crore, this marks the first sustained buying streak after months of outflows.
Across all asset classes — including equity, debt, hybrid, and mutual funds — FPIs recorded a cumulative net inflow of ₹3,717.44 crore for the week, as per NSDL data. However, the week's reversal contrasts sharply with the broader month-to-date picture. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that "FPIs continued selling in April taking the total sell figure for April through 17 to ₹44,929 crore," adding that "the total FPI selling in 2026, so far, now stands at ₹1,86,070 crore." Despite the recent buying streak, FIIs have remained consistent sellers in 2026, with April 2026 alone witnessing ₹39,224.10 crore in outflows, following heavy selling of ₹1,22,540.41 crore in March.
The primary catalyst for this buying streak has been RBI's robust actions to limit excessive speculation in currency markets, which has reversed the rupee's extended depreciation trend. As per Vijayakumar, "A major factor driving the FII outflows was the steady depreciation in the rupee. Partly the depreciation of the currency was due to excessive speculation in the currency markets. RBI stepped in to drastically reduce this speculation, which resulted in the rupee appreciating to 92.85 levels from the low of 95.30 touched on March 30th." The currency has bounced back from approximately ₹95.30 per dollar on March 30 to around ₹92.85 by April 17, with the drop in Brent crude prices to about $90 following recent developments in the Hormuz Strait providing further support to the rupee.
While FIIs showed renewed interest, Domestic Institutional Investors (DIIs) have maintained their strong support role, emerging as net sellers over the past three trading days. On April 17, DIIs offloaded equities worth ₹4,721.48 crore, followed by net selling of ₹3,427.75 crore on April 16 and ₹568.98 crore on April 15. However, DIIs have remained strong net buyers in 2026, providing consistent support to the markets amid foreign outflows. In April 2026, DIIs invested ₹29,696.62 crore, following robust inflows of ₹1,42,960.37 crore in March, with February seeing net buying of ₹38,423.11 crore and January recording inflows of ₹69,220.74 crore.
According to Mohit Gulati, CIO and managing partner of ITI Growth Opportunities Fund, while three days of inflows are encouraging, they do not constitute a trend. Gulati believes that the current global risk-on environment has broadly lifted emerging market allocations, but within Asia, incremental FII dollar has been finding its way to Taiwan and China far more decisively than to India. "For a durable reversal in FII flows, the market needs to satisfy three non-negotiable conditions: a material de-escalation on the geopolitical front, an earnings cycle that actually inflects upward, and a demonstrated return of policy and legislative momentum from the government," Gulati explained. Without these triggers in place, flows will remain episodic and shallow, with investors who chase this move purely on sentiment risk being caught on the wrong side when the narrative resets.
