New Delhi, Jan 11 || Analysts on Sunday said that foreign institutional investors (FIIs) will turn buyers in India with positive developments on the US-India trade agreement and uptick in earnings growth, which will improve investor sentiment.
FII investment in early 2026 has begun with the continuation of the trend of the previous year.
In 2025, FIIs had net sold equity for Rs 166,283 crore, impacting the performance of the Indian market and also weakening the rupee by about 5 per cent.
“At the beginning of 2026, the expectation was that FIIs will turn buyers on improvement in GDP growth and corporate earnings,” said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
Also, the market expectation was that the much delayed US-India treaty will materialise early in the year.
“But geopolitical developments took a turn for the worse with the US intervention in Venezuela and absence of positive developments on the trade talks. Some negative comments from the US commerce secretary gave the impression that the trade agreement will be further delayed,” he noted.