FIIs Return To D-Street: Positive Flows Signal Comeback - Where To Invest Now

Foreign institutional investors (FIIs) appear to be gradually returning to Indian equities, with net purchases of around ₹6,000 crore recorded between February 1 and 9. Market experts attribute the improving sentiment to the announcement of the India-US trade deal, which has emerged as a key confidence booster for global investors. Corporate earnings have largely been in line with expectations, with select segments such as financial services delivering better-than-expected results. While a sharp surge in inflows is unlikely, analysts believe FIIs will continue investing in a calibrated manner. The initial focus is expected to remain on large-cap stocks, where valuations are relatively more comfortable. Mid- and small-cap segments may see interest later, once valuations become more attractive and confidence strengthens further.