Foreign investors have poured over Rs 14,000 crore into India’s equity markets so far in May, buoyed by supportive global trends and strong domestic economic fundamentals.
As per depository data, Foreign Portfolio Investors (FPIs) made a net investment of Rs 14,167 crore into equities between 1 and 9 May.
This comes as a continuation of the upward trend witnessed in April and marks a significant shift from the net outflows recorded earlier this year.
India’s stock market saw renewed interest from FPIs in April, with a net inflow of Rs 4,223 crore.
This followed sustained selling pressure in the preceding months, with FPIs pulling out Rs 3,973 crore in March, Rs 34,574 crore in February, and Rs 78,027 crore in January.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the recent inflows to a combination of global and domestic factors.
He stated, “Due to global reasons like dollar weakness, slowing pace of US and Chinese economy and domestic reasons like strong economy, low inflation and interest rates, FPI inflow in Indian stock market has remained positive.”
Debt Segment May See Subdued Activity
Despite the positive sentiment in equities, Vijayakumar noted that inflows into the debt segment might remain subdued going forward.
With the latest inflows in May, total FPI outflows for 2025 have reduced to Rs 98,184 crore.
He further pointed out a consistent trend of FPI activity: “The hallmark of FPI investment in recent times has been continuous buying by them. They bought equities worth Rs 48,533 crore through the exchanges continuously in 16 trading days ending May 8. However, they sold equities for Rs 3,798 crore on May 9 due to the India-Pakistan tensions.”
Other market analysts observed that the Rs 14,000 crore figure crossed within the first half of May reflects growing foreign investor confidence in the Indian equity market.
They believe this momentum could continue in the weeks ahead.
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