Foreign Institutional Investors have offloaded ~₹1.4 lakh crore so far in 2025, pressuring markets.

Recent global rate cuts, trade optimism, and domestic reforms signal potential reversal. 

FIIs might return if earnings in key sectors improve and macro risk reduces. 

However, currency weakness and global inflation remain headwinds to inflows. 

Equity valuations, especially in large cap / export-sectors, are being reassessed. 

Infrastructure, energy, and financial sectors may be first beneficiaries. 

Fund managers are watching for clear signs of FII participation before committing heavily. 

A sustained FII pickup could support index uptrend and reduce volatility. 

Domestic investors may also increase exposure in anticipation of inflows.

Overall, market watchers view FII flow dynamics as key to near-term market health.