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. Conversely, domestic institutional investors (DIIs) made significant purchases amounting to Rs 6,06,368 crore over the same period. The altered FII approach in March played a pivotal role in driving gains for the Nifty index. Regulatory initiatives such as the Securities and Exchange Board of India’s (SEBI) revised threshold for beneficial ownership disclosures and the Reserve Bank of India’s (RBI) augmented investment cap are poised to enhance market liquidity and potentially attract more investors. These developments reflect a potentially positive outlook for India’s financial markets as they navigate through changing dynamics and investor sentiments.