Mumbai, February 10: The Indian stock market is witnessing a resurgence of foreign institutional investors (FIIs), who have made significant purchases in recent trading sessions. Over the past nine trading days, FIIs have bought shares worth more than $2 billion, contributing to a bullish trend in the market.
According to exchange data, on February 9 alone, foreign investors acquired shares worth approximately ₹2,223 crores.
Market experts caution, however, that it is premature to conclude whether this investment will be sustained in the long term. They believe that continued foreign investment will depend on global trade stability, improvements in corporate profits, and a weaker dollar.
During this period, domestic institutional investors (DIIs) have also shown robust purchasing activity, acquiring shares worth about ₹8,973 crores over the last nine days. Experts note that this indicates a significantly strengthened role of domestic investors in the Indian stock market.
Currently, the share of domestic investors in the Nifty 50 has surpassed that of foreign investors. This shift is attributed to a consistent inflow into mutual fund SIPs, increased participation from retail investors, and regular investments from insurance and pension funds. Meanwhile, foreign investors have become more cautious due to global economic uncertainties, rising foreign interest rates, and a strengthening dollar.
Himanshu Srivastava, Principal and Manager Research at Morningstar Investment Research India, stated that domestic investment provides long-term stability to the market, reducing reliance on foreign investment and mitigating market shocks during global crises. This, in turn, strengthens and stabilizes the Indian stock market.
Analysts suggest that following a recent decline, Indian stock prices have become more attractive compared to other Asian markets, rekindling foreign investors’ interest. Additionally, clarity regarding trade agreements between India and the United States has bolstered investor confidence.
During this bullish phase, both the Sensex and Nifty have recorded gains of over 3%. The BSE Midcap 150 index has surged by approximately 5.66%, while the BSE Smallcap 250 index has seen an increase of around 6.3%.
Market experts believe that the Reserve Bank of India‘s accommodative stance, improvements in GDP, positive earnings expectations from companies, and the stability of domestic investment are key factors that could attract foreign investment to India.
According to a report by Motilal Oswal Securities, as of the December 2025 quarter, domestic institutions held about 24.8% of the Nifty 50, slightly surpassing the 24.3% stake of foreign investors.
Analysts indicate that the share of foreign investors is at its lowest level in eight quarters, while the domestic capital base continues to strengthen. This shift is perceived as not temporary but rather a long-term trend.
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