FII heavy outflows/low ownership with selective buys vs DII resilience
Key Questions
Why have FIIs shown mixed flows recently?
FIIs turned net buyers at ₹822 cr after sustained selling and short covering, with a long-short ratio of 13.9, though BofA anticipates further exodus into 2027.
How are DIIs and promoters supporting the market?
DII/SIP inflows and promoter buys provide cushion against FII outflows amid selective buying in stocks like APL Apollo, Home First, MTAR, MCX, and Shriram Finance.
What policy changes aim to attract foreign capital?
India scrapped capital gains tax on overseas bond investors effective April 1, 2026, and raised NRI investment limits to boost inflows into equities and G-Secs.
What is RBI Governor Sanjay Malhotra's view on foreign inflows?
He remains optimistic about healthy foreign inflows across equity and government bond measures following recent policy relaxations.
Will tax relief alone reverse FII selling?
Experts like Dhiraj Agarwal note that tax relief is insufficient without stronger earnings growth and rupee stability to sustain inflows.
Which stocks are seeing consistent FII buying?
Videos highlight 11 stocks with consistent FII interest, including five specific names: APL Apollo, Home First, MTAR, MCX, and Shriram Finance.
What upside does Motilal Oswal see for ICICI Bank?
Despite a 10% fall in six months, Motilal Oswal projects 41% upside potential for ICICI Bank shares.
What risk could exacerbate FII outflows?
A potential unwind of the Japanese carry trade poses additional risk that could intensify outflows from Indian markets.
FIIs turned net buyers (₹822 cr) briefly but then sold ₹8,700 cr despite tax relief, indicating sustained pressure. BofA still sees exodus to 2027. DII/SIP and promoter buys cushion. Key policy development: India scrapped capital gains tax on overseas bond investors (effective April 1, 2026), raised NRI investment limits, and RBI liberalized FPI norms for G-secs. RBI Governor Sanjay Malhotra optimistic. Alok Jain questions whether tax cuts will actually bring inflows. Dhiraj Agarwal says earnings and rupee stability key. Piramal's chief economist calls outflows temporary 'fear psychosis'. Videos identify 11 stocks and 5 specific stocks (APL Apollo, Home First, MTAR, MCX, Shriram Finance) that FIIs are consistently buying. Motilal Oswal sees 41% upside on ICICI Bank. Japanese carry trade unwind risk could exacerbate outflows.