Foreign institutional investors (FIIs) have recently demonstrated a positive trend in the Indian stock market, recording net purchases over three consecutive days. On April 17, FIIs invested ₹683.20 crore, following ₹382.36 crore on April 16, and ₹666.15 crore on April 15, indicating a potential reversal after a prolonged period of outflows. In stark contrast, FIIs had withdrawn ₹39,224.10 crore in April 2026 alone, reflecting a significant decline in investor confidence due to global uncertainties. Domestic institutional investors (DIIs) have taken a cautious approach, emerging as net sellers with ₹4,721.48 crore offloaded on April 17. The recent stabilization of the Indian rupee, which appreciated from ₹95.30 to ₹92.85 against the dollar, has been attributed to the Reserve Bank of India's (RBI) measures to curb speculation in currency markets. Experts suggest that while the recent inflows are encouraging, they do not signify a definitive trend, as broader economic conditions and geopolitical stability remain uncertain. A durable reversal in FII flows will require significant improvements in these areas.