War drums with Pakistan may force FIIs to hit brakes after Rs 50,000 crore buying spree

FIIs have pumped over Rs 50,000 crore into Indian markets since mid-April, but rising India-Pakistan tensions may test their resolve. Experts warn that a prolonged conflict could hurt inflows and derail fiscal plans. While analysts advise caution and defensive positioning, India’s strong macros and limited trade exposure to Pakistan may shield the economy from major shocks.