FIIs Buying Latest Update: The interest of foreign investors in the Indian stock market seems to be increasing once again. In the last nine trading days, foreign institutional investors (FIIs) have made net purchases of more than $2 billion in the Indian stock market. Due to this, there has been an upward trend in the stock market in the last few days. However, experts believe that it is too early to draw any final conclusions about the sustainability of this return of foreign investors.

Of the nine trading days between January 28 and February 6, foreign investors were net buyers on six days, while they were net sellers on three days. According to the provisional data of February 9, FIIs made a net investment of ₹ 2,223 crore in the Indian stock market. The recent purchases come at a time when Indian markets have seen heavy selloffs in the past, making valuations more attractive compared to other Asian markets.

Valuation close to long-term average

Currently, Sensex and Nifty are trading at 20.5 and 20.1 times their one-year forward price-to-earnings (PE) multiples, respectively, which is close to their 10-year average.

In the broader market, the BSE Midcap-150 index is trading at around 28 times its one-year forward PE, while its long-term average is considered to be around 27.3 times.

Can foreign investor purchases continue?

Some experts believe that if global trade stability continues, corporate earnings will improve. If the dollar weakens due to interest rate cut, then the trend of foreign investment may continue in emerging markets like India.

According to Vikram Kasat, Advisory Head at PL Capital, the sentiment of foreign investors has changed after two years of continuous selling. In 2025 alone, FIIs made net sales of approximately $18.88 billion.

He said that the recent India-US trade agreement has reduced uncertainty, stabilized bond yields and improved risk appetite. Earlier, high valuations, weak earnings, strong dollar and trade tensions had together reduced foreign investment.