Rupee Stabilizes, Inflation in Check — FIIs Return to India’s Markets
A couple of months ago, we discussed how Foreign Institutional Investors (FIIs) were pulling money out of Indian markets. Rising U.S. bond yields, a strengthening dollar, and more attractive risk-free returns abroad were driving capital away from emerging markets like India. (You can read the previous blog here: FII Exit from Indian Markets: Beneficial or a Missed Opportunity ) But over the past few weeks, there’s been a quiet yet powerful shift — FIIs are coming back. The reasons behind this reversal are rooted in both global and domestic market dynamics, and it's worth breaking them down clearly. India’s Outperformance on the Global Stage While markets across the US, China, Japan, and Europe are still struggling to reclaim their pre-volatility levels, India has quietly surged ahead. Not only have we recovered the ground lost in previous corrections, but key indices like the Nifty have also been testing and crossing important resistance levels. In a worl...