Foreign institutional investors (FIIs) and domestic institutional investors (DIIs) showed robust buying activity in the Indian equity markets on June 9, 2025, with FIIs net purchasing ₹1,993 crore and DIIs net purchasing ₹3,504 crore. FIIs’ long-short ratio for index futures stood at 19.66. Despite this, mutual fund data for May 2025 indicated a decline in net equity inflows to ₹19,013 crore, marking a 22% decrease from April's ₹24,269 crore and the lowest level in a year. Large-cap funds experienced the steepest decline with a 53% drop in inflows. However, systematic investment plan (SIP) inflows rose to a record ₹26,688 crore in May, contributing to a total assets under management (AUM) increase to ₹72.2 lakh crore from ₹70 lakh crore in April. New Fund Offer (NFO) inflows surged over 1000% in May, reaching their highest level since January. Passive mutual fund inflows continued for the 55th consecutive month, with gold ETFs turning positive. The cautious investor sentiment is attributed to geopolitical tensions and tariff uncertainties. Meanwhile, in the U.S., foreign investors pulled out $37 billion from U.S. stocks in May, the largest monthly exit in a year, following a $7 billion outflow in April, reflecting concerns over trade policy and market volatility. DIIs, including mutual funds, banks, insurance firms, and pension funds, have invested over ₹3 lakh crore in Indian equities so far in 2025, with six months remaining in the year.