When will foreign investors return to the stock market in India? These 2 major announcements showed no effect

Last week witnessed a significant surge in India’s stock markets. The reason behind this was the announcement of major improvements in the GST structure and an upgrade in India’s sovereign rating by S&P Global. Despite these positive developments, foreign institutional investors (FIIs) continued to pull out funds from the Indian stock market, selling more than 2,000 crore rupees between August 18 and 22. During the same period, the Sensex and Nifty almost reached a 1% increase, while the BSE MidCap and SmallCap indexes surged by over 2%. This rise was likely fueled by nearly 10,000 crore rupees worth of purchases by domestic investors.