Foreign buyers continue to present confidence in the nation’s fairness market, infusing ₹14,167 crore to this point this month, largely pushed by beneficial international cues and strong home fundamentals.
Notably, this influx has come regardless of the continued navy tensions between India and Pakistan.
India-Pakistan ceasefire LIVE: Follow the updates on May 11, 2025
This constructive momentum follows a internet funding of ₹4,223 crore in April, marking the primary influx after three months, knowledge with the depositories confirmed.
Prior to this, overseas portfolio buyers (FPIs) had pulled out ₹3,973 crore in March, ₹34,574 crore in February, and a considerable ₹78,027 crore in January.
“Going ahead, global macros (declining dollar, slowing U.S. and Chinese economy) and domestic macros (high GDP growth and declining inflation and interest rates) will facilitate increasing FPI inflow into the Indian equity,” V.Okay. Vijayakumar, Chief Investment Strategist, Geojit Investments, stated.
However, debt inflows are probably to stay very low, he added.
According to the information from the depositories, FPIs made a internet funding of ₹14,167 crore in equities in this month (until May 9). The newest movement has helped slender the outflow to ₹98,184 crore in 2025 to this point.
India’s fairness markets witnessed a pointy resurgence in FPI exercise in April, signalling a marked reversal from the outflow seen earlier this yr. The momentum continued in May, too.
“This renewed momentum was underpinned by a blend of favourable global cues and robust domestic fundamentals that bolstered investor confidence,” Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment, stated.
One of the important thing catalysts behind this pattern has been the bettering outlook for a possible U.S.-India commerce settlement. Additionally, the weakening of the U.S. greenback, alongside a strengthening Indian rupee, enhanced the attraction of Indian belongings to international buyers, he stated.
“Furthermore, upbeat quarterly earnings from prominent Indian corporates added to the positive sentiment,” he added.
“The hallmark of FPI investment in recent days has been the sustained buying by them. They bought equity through the exchanges consecutively for 16 trading days ended on May 8 for a cumulative amount of ₹48,533 crore. They sold for ₹3,798 crore on May 9 when the India-Pak conflict got escalated,” Geojit Investments’ Mr. Vijayakumar stated.
On the opposite hand, FPIs took out ₹3,725 crore from the debt normal restrict and invested ₹1,160 crore in the debt voluntary retention route through the interval underneath overview.
Published – May 11, 2025 11:31 pm IST
