Foreign investors are showing renewed interest in Indian and U.S. equity markets after a period of withdrawal. In India, foreign institutional investors (FIIs) recorded a net inflow of ₹18,082 crore in May 2025, up from ₹4,243 crore previously, supported by $5.5 billion worth of large block trades. This contributed to a 1.7% gain in Indian markets for the month, marking the third consecutive monthly advance. Meanwhile, U.S. equity funds are on track to receive $138 billion in foreign inflows this year, which would be the second highest annual inflow on record. Gold funds are also experiencing historic inflows, with an annualized $75 billion entering gold ETFs, the largest ever recorded. Despite the strong demand for gold, this inflow is roughly equivalent to just two weeks of new U.S. federal debt, which is running at about $1.9 trillion annually. Market analysts, including Morgan Stanley's Dan Skelly, confirm that inflows into U.S. stocks remain robust.