FII net sellers in Indian stock market for 12 months in a row. Can the trend change?

After twelve consecutive months as net sellers, foreign institutional investors (FIIs) are ramping up purchases in Indian equities, investing nearly $899 million in the last five trading sessions, with a single-day net inflow of Rs 4,859.07 crore on June 19—the highest since February 3. The sentiment shift is attributed to tax relief measures, supportive RBI actions, FTSE rejig, easing US-Iran tensions, and cooling crude oil prices. However, analysts caution that sustainability depends on the US dollar trajectory, 10-year yields, absence of fresh geopolitical shocks, and the AI-led rally in South Korea and Taiwan continuing to absorb global flows.