FPIs extend investment in Indian equities, inject Rs 17,425 crore in a week

Foreign investors have infused Rs 17,425 crore in the country's equity markets last week, supported by a combination of favourable global cues and strong domestic macroeconomic fundamentals.

This came following a net investment of Rs 8,500 crore in the preceding holiday-truncated week ended April 18.

Globally, steady performances in major markets, expectations of a pause in US Federal Reserve's rate hikes, and a stable US dollar boosted risk appetite for emerging markets like India. Easing global trade tensions further lifted investor sentiment, Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said. 

Domestically, India's resilient growth outlook, moderating inflation, and an optimistic forecast of an above-normal monsoon for 2025 enhanced confidence in the market. Together, these factors created an attractive investment environment for foreign investors, he added.

According to the data with the depositories, Foreign Portfolio Investors (FPIs) made a net investment of Rs 17,425 crore in equities during April 21 to April 25.

Overall, FPIs pulled out Rs 5,678 crore from the equities in April so far, taking the total outflow to Rs 1.22 lakh crore since the beginning of 2025, data showed.

The initial part of the month was marked by aggressive FPI selling, driven largely by global uncertainties stemming from the US tariff policy developments.

This reversal in FPI activity happened at a time of heightened tensions between India and Pakistan following the Pahalgam terror attacks.

This renewed interest in FPI activity has been caused by two important factors. One, the sustained rise in dollar, which triggered the momentum trade towards US equities, has reversed with the dollar index falling from a peak of 111 in mid-January this year to around 99 now, V K Vijayakumar, Chief Investment Strategist, Geojit Investments, said.

Two, the steep decline in US growth expected this year will impact corporate earnings in US while the Indian economy will continue to remain resilient with growth of above 6 per cent accompanied by recovery in corporate earnings, he added.