Foreign portfolio investors (FPIs) injected around ₹8,500 crore into Indian equities during the shortened trading week, according to data from the National Securities Depository Limited (NSDL).
Trading took place only on three days, Tuesday, Wednesday, and Thursday, due to holidays on Monday and Friday.
Still, the markets saw a positive trend, supported by the return of foreign investors who had been net sellers in previous months.
One of the key drivers behind the renewed inflows was the weakening of the US dollar.
As the dollar depreciates and currencies like the Indian rupee strengthen, FPIs find it more attractive to shift capital from the US to emerging markets such as India.
Aashish P Sommaiyaa, Executive Director and CEO of WhiteOak Capital, explained, “The positive fallout of the US tariff scenario and the impending global slowdown is twofold, first, the declining dollar and strengthening of emerging market currencies like the rupee make it easier for FPIs to reallocate funds to markets like India.”
Sommaiyaa further added, “It also allows the Reserve Bank of India (RBI) to maintain easier monetary and credit conditions. Given the global slowdown, particularly in China and the US, domestically driven economies like India are likely to attract more foreign capital.”
Despite the recent inflows, overall FPI activity in April remains negative.
FPIs have pulled out a net ₹23,103 crore from Indian equities so far this month. The broader 2025 outlook also shows continued weakness, with total net outflows standing at ₹1,39,677 crore for the year.
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