Foreign institutional investors (FIIs) were net sellers of Rs 1,27,401 crore in the financial year 2025, with a noticeable easing of selling in March. On the other hand, domestic institutional investors (DIIs) bought Rs 6,06,368 crore worth of assets throughout the year. The shift in FII strategy during March played a significant role in the gains seen in the Nifty index. Recent regulatory changes by the Securities and Exchange Board of India (SEBI) introducing a new threshold for beneficial ownership disclosures, along with the Reserve Bank of India (RBI) increasing the investment cap, are all aimed at enhancing market liquidity and attracting more investments. These developments are poised to have a positive impact on the Indian financial markets and are closely being monitored by investors and analysts alike.