Foreign institutional investors (FIIs) have resumed buying Indian equities, driven by expectations of an impending India-US trade deal and structural growth story. On 26 Oct, inflows were reported from Northern-hemisphere funds rotating into India’s banking and consumer sectors. This reversal comes after months of outflows and is seen as a positive sign for local markets. Analysts caution, however, that underlying global risk remains high and the sustainability of flows will depend on policy clarity and earnings stability in India’s domestically-oriented stocks.