Mumbai, May 8 -- Foreign portfolio investors (FPIs) are showing growing confidence in India's markets, undeterred by the escalating tensions between India and Pakistan.

On the heels of India's air strikes across Pakistan and Pakistan-occupied Kashmir, FPIs made a notable shift by turning net long on index futures (Nifty and Bank Nifty) for the first time in seven months. While this move signals optimism, analysts warn that any retaliatory action from Pakistan could change the market's trajectory.

On Wednesday, FPIs turned net long by 458 contracts-their first net long position since 4 October, when they held 27,662 contracts, according to IndiaCharts.

Read this | FPIs bet on limited Nifty movement amid simmering India-Pakistan tensions...