Foreign institutional investors (FIIs) were net sellers of Rs 1,27,401 crore in the fiscal year 2025, with a noticeable easing of selling activities in March. On the other hand, domestic institutional investors (DIIs) displayed a positive trend by purchasing Rs 6,06,368 crore worth of securities throughout the year. The strategic shift in FII behavior during March played a significant role in driving gains in the Nifty index. In a bid to enhance market liquidity, the Securities and Exchange Board of India (SEBI) introduced a new threshold for beneficial ownership disclosures, while the Reserve Bank of India (RBI) raised the investment cap. These regulatory measures are expected to stimulate investment activity and improve overall market performance in the Indian financial landscape.