Foreign Investors Pour Rs 18,620 Cr in Indian Stocks, Global & Local Factors Drive Inflows
New Delhi: Foreign investors are once again showing strong confidence in India's stock market. In May so far, they have invested Rs 18,620 crore in Indian equities. This investment is supported by global positive cues and improving domestic conditions.
In April, foreign portfolio investors (FPIs) had already started returning, with a net investment of Rs 4,223 crore. This was the first time in three months that FPIs brought in money. Earlier, they had pulled out funds — Rs 3,973 crore in March, Rs 34,574 crore in February, and a big Rs 78,027 crore in January.
Experts believe that FPIs will continue to show interest in Indian stocks, especially large companies. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said that large-cap stocks will remain strong.
According to data from depositories, the total FPI outflow in 2025 so far stands at Rs 93,731 crore. However, the trend is changing now, with buying momentum picking up again since mid-April.
One major reason for this change is the announcement of a ceasefire between India and Pakistan. This news helped ease regional tensions and boosted investor confidence. Himanshu Srivastava from Morningstar Investment said this was a key factor.
The global mood also improved after the United States and China agreed to a 90-day pause in their trade war. This gave a boost to emerging markets like India, attracting fresh investments.
On the home front, India’s strong economic outlook, friendly monetary policy, and good corporate earnings added to the positive sentiment.
While the equity market saw good inflows, the bond market did not do as well. FPIs took out Rs 6,748 crore from the debt general category. However, they did invest Rs 1,193 crore in bonds under the voluntary retention scheme.
To improve bond market participation, Sebi released a proposal to give relaxations to FPIs investing in Indian government bonds. This move is important, especially after Indian bonds were added to global indices.
(With PTI Inputs)
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