FIIs' record investment after September makes Indian market again becomes attractive amid global tensions

Despite American tariffs and tensions among various nations, foreign institutional investors (FIIs) have come back to the Indian market. They have invested a record high amount of Rs 18,620 crore in May after September. Shares as high as Rs 57,724 crore were purchased in September previously. So not just that, on Friday, a record 8,831 crore-worth of shares were purchased on a single day after March 27.

We see from the data that whenever FIIs have been withdrawing funds from the Indian market, the market experienced a massive downfall and their return registered a boom. Because of constant heavy investments up to September last year, BSE went past its record level of 85,978. Since then, because of heavy withdrawals on part of FIIs, the market also dipped by 14,000 points. To illustrate, in October, FIIs withdrew 94,017 crores. The Sensex that had registered a record on 26 September dipped by over 6,000 points in a single month.

Foreign investors withdrew 78,027 crores in January, and the Sensex closed down by more than 600 points. In February, there was a withdrawal of 34,574 crores, and the Sensex fell by more than 4,300 points.

In April, foreign investors invested Rs 4,223 crore in the Indian market. Due to this, the BSE Sensex closed with a gain of more than 2,600 points. So far in May, these investors have invested Rs 18,620 crores and the Sensex closed up by more than 2,000 points. The situation in the markets around the world is still not very good. But from January till now, the Sensex has gained more than 4,000 points.