Analysts see bright FY26 with strong DII support and renewed FPI interest

In the first half of 2025, domestic institutional investors aggressively bought Indian equities, exceeding ₹3.5 lakh crore, while foreign portfolio investors remained net sellers at ₹1.2 lakh crore. A turnaround occurred in March due to easing interest rates and government tax incentives. Analysts anticipate continued foreign inflows and domestic investment, projecting a positive outlook for FY26.