Foreign Institutional Investors' Net Buying Hides Ongoing Market Skepticism

Mumbai FPIs Remain Bearish on Indian Shares

Foreign portfolio investors (FPIs) in India are far from turning bullish on the country's stock market. Despite recent buying activity in the cash market, market experts attribute this to the closing out of reverse arbitrage (arb) positions, rather than fresh cash market buying.

According to market analysts, FPIs have not yet shown any signs of increasing their exposure to Indian equities. The recent buying activity is seen as a tactical move to unwind arb positions, rather than a long-term bullish bet on the market.

The Indian stock market has been a favorite among global investors in the past, but the current sentiment remains bearish. FPIs have been net sellers in the Indian market for several months, and it remains to be seen when they will turn bullish again.