8%, and the better-than-expected Q1 earnings numbers and stabilisation of the rupee are other positive factors that have the potential to sustain the positive FPI inflows into India.

“This is hugely significant from the FPI perspective,” Vijayakumar noted.

However, going forward, the FPI flows will be primarily influenced by the bond yields which are rising globally.

S. ” HSBC says $25 billion inflows on the cardsMore than 80% of active global emerging-market funds are underweight in India. “FII outflows linked to AI rotation have largely played out,” the strategists said.

” The potential reallocation would mark a significant reversal for Indian equities after foreign investors diverted capital toward markets benefiting more directly from the artificial-intelligence trade.

FII activity in AugustConsumer Services attracted the highest inflows during the fortnight, with Rs 5,019 crore flowing into the sector.

This took the sector’s total inflows for August to Rs 8,417 crore.

The buying follows a strong July, when the sector recorded inflows of Rs 10,191 crore. Financial Services followed closely, attracting over Rs 4,000 crore from FIIs during the fortnight. SBI Securities said the return of foreign buying suggests that selling pressure on the sector has eased, with investors gradually rebuilding their exposure.

Healthcare attracted Rs 3,021 crore during the second half of August. Over the rolling two-month period, the sector received Rs 12,076 crore of inflows. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.