FIIs have been actively buying shares, with a total value of over Rs 23,500 crore in just four sessions. This increased buying has led to a rally in the local equities market, with the Sensex and Nifty indices rising for five consecutive sessions and gaining over three percent during this period.

Experts believe that the attractive valuations following recent stock price corrections have contributed to this surge in buying. There is also speculation that the RBI may soon lower interest rates, as there is a growing expectation that India's inflation has peaked. This anticipation has led to pre-policy buying, and projections suggest that if interest rates decline as expected, there could be a gradual easing of rates in the next 6-8 quarters, potentially boosting economic growth beyond previous forecasts.