FIIs stage strong comeback with ₹7,470 crore investment; adds ₹22 lakh crore to market

Foreign institutional investors (FIIs) made a major return to the Indian equity market, registering their largest net purchase of the year on March 21, 2025, with a massive ₹7,470 crore. This marked a significant turnaround, as markets surged, adding ₹22 lakh crore in wealth. The rupee also had its best weekly performance in two years.

Strong Buying Spree and Market Rebound

The strong inflow of foreign capital helped reverse the market’s recent trend, as FIIs turned net buyers for the third consecutive day. In just three days, they poured in a total of ₹11,404 crore, with the buying spree beginning on March 18, when FIIs purchased ₹694.57 crore worth of stocks. This continued momentum led to an additional ₹3,239.14 crore of net purchases on March 20.

Equity Markets Rally

This renewed buying interest spurred a sharp rally in the Indian stock markets. The Nifty 50 saw an impressive rise of over 6% this week, marking its best performance since February 2021. Midcap and Smallcap indices outperformed with gains of 7% and 8%, respectively, registering their strongest performance since 2020.

Investor Wealth Soars

Investor wealth saw a dramatic ₹22 lakh crore addition, with the market capitalisation of BSE-listed companies climbing back above the ₹400 lakh crore mark, currently standing at ₹412 lakh crore.

Rupee Strengthens Amid Inflows

The rupee strengthened significantly, closing at ₹86 per US dollar on March 21, gaining 36 paise on the day and 123 paise over the week. This surge in the rupee came as a result of strong foreign inflows, along with the market rebound. Analysts remain optimistic about the rupee’s future performance but caution that rising crude oil prices may limit further appreciation.

As FIIs continue to show interest, market experts are hopeful that the positive momentum will continue, helping both the equity market and the rupee to maintain their upward trajectory.