Foreign institutional investors (FIIs) staged a strong comeback in Indian equities, making their highest net purchase of 2025 on Friday, March 21, with a provisional buy tally of ₹7,470.36 crore.
This marked the third session of net buying by FIIs this week, reversing their selling trend. Meanwhile, domestic institutional investors (DIIs) were net sellers, offloading shares worth ₹3,202.26 crore.
This week’s buying spree began on March 18, when FIIs turned net buyers for the first time in a month, purchasing ₹694.57 crore worth of equities. Their momentum continued on March 20, with net inflows of ₹3,239.14 crore.
The renewed buying interest from foreign investors has fuelled a sharp rally in Indian equity markets.
Markets rebound sharply, best week since 2021
The Nifty 50 has surged over 6% this week, marking its best performance since February 2021. The Midcap and Smallcap indices outperformed, gaining over 7% and 8%, respectively — their strongest week since 2020.
Investor wealth saw a staggering ₹22-lakh crore addition, bringing the total market capitalisation of BSE-listed firms back above the ₹400-lakh crore mark, currently at ₹412 lakh crore.
Rupee surges on FII inflows, best week in two years
Rising rupee
The rupee closed at ₹86 per US dollar on March 21, gaining 36 paise on the day and 123 paise over the week — its best weekly advance since January 2023. Strong foreign inflows, coupled with an equity market rebound, drove the currency’s appreciation.
Analysts remain bullish on the rupee’s trajectory in the near term but caution that rising crude oil prices could cap further gains.
(Edited by : Shoma Bhattacharjee)
First Published: Mar 21, 2025 7:57 PM IST
