Rs 37,600 crore in 11 days! FIIs are flooding Indian stocks with cash but will it last?

For 11 straight sessions, foreign investors have been on a stock-buying spree in India, pumping a staggering Rs 37,600 crore into local equities. It’s the kind of bullish streak that turns heads on Dalal Street—and it's happening as the rupee flexes its muscles and the dollar shows signs of fatigue.

The Indian currency soared 77 paise against the greenback on Wednesday, closing at a five-month high of 84.49. That’s the sharpest single-day gain since November 2022. The tailwinds? A cooling crude oil market and this relentless wave of foreign institutional investor (FII) inflows.

The mood in the global macro theater is adding to the India cheer. According to Emkay Global, “The DXY correction of ~10% from its peak is meaningful, now below 100 after 100 days of Trump’s tumultuous tenure. Tariff risks appear largely priced in, with the path ahead skewed toward constructive trade negotiations broadly favorable for India.”


Emkay also noted that the majority of their clients “concurred with our positive view on India. The RBI easing puts India in a more favorable cyclical position, especially as worries around a deep recession in the US abate. This is also resulting in India seeing disproportionate flows vs other emerging markets.”

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That conviction is showing up in the numbers—and the narrative.

“Valuations are back to neutral territory & have started to look attractive,” said Pradeep Gupta, Executive Director and India Head of Investment at Lighthouse Canton. “India now trades at a premium of 75% to the EM Index—not too far from long-term averages of 61%.”

Gupta added that while FIIs remain underweight on India for now, that positioning may not hold for long. “We expect the flow rotation from China to India to start taking place soon, while overall intensity of FII selling is also likely to start coming down.”

The weakness of the dollar and India’s macro resilience have turned the country into a magnet for global capital.

“FIIs are positive on the India story,” said Vikram Kasat, Head of Advisory at PL Capital, “but they remain cautious about high valuations.” With India still trading at a premium to its EM peers, foreign investors are zeroing in on quality names and sectors, steering clear of indiscriminate buying.

Still, this doesn’t look like hot money just passing through. The sustained inflows suggest conviction—especially in the face of tepid Q4 earnings and geopolitical tensions with Pakistan.

Vinod Nair, Head of Research at Geojit Investments, struck a balanced note. “The broad market performed well this month, driven by reduced tariff risks, a potential US-India trade deal, and strong FII inflows,” he said. “However, momentum is being capped by rising tensions between India and Pakistan and muted Q4 results. This negative bias is expected to persist in the near term... but the long-term outlook remains positive.”

The Rs 37,600 crore question: Is this a lasting trend or just a tactical bet? For now, the smart money is betting on India—and not looking back.