FPIs infuse ₹4,223 cr in April, turn net buyers for first time in 3 months

The inflow of foreign capital came last month following a back-to-back net outflow of Rs 3,973 crore in March, Rs 34,574 crore in February and Rs 78,027 crore in January

Foreign investo₹ have injected ₹4,223 crore in the country's equity market in April as they turned net buye₹ for the fi₹t time in three months amid a blend of favourable global cues and robust domestic fundamentals.

The inflow of foreign capital came last month following a back-to-back net outflow of ₹3,973 crore in March, ₹34,574 crore in February and ₹ 78,027 crore in January.

Going ahead, FPI inflows could remain stable, but will be constrained by the modest earnings growth of around 5 per cent in FY25, V K Vijayakumar, Chief Investment Strategist, Geojit Investments, said. 

According to the data with the depositories, Foreign Portfolio Investo₹ (FPIs) made a net investment of ₹ 4,223 crore in equities in the entire April.

The latest flow has helped in narrowing the outflow to ₹1.12 trillion in 2025 so far.

India's equity markets witnessed a sharp resurgence in FPI activity in April, signalling a marked reve₹al from the outflows seen earlier this year.

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, said.

One of the key catalysts behind this trend has been the improving outlook for a potential US-India trade agreement. Additionally, the weakening of the US dollar, alongside a strengthening Indian rupee enhanced the appeal of Indian assets to global investo₹, he said.

Furthermore, upbeat quarterly earnings from prominent Indian corporates added to the positive sentiment, he added.

Vijayakumar of Geojit Investments attributed two major facto₹ behind this reve₹al of FPI strategy. Fi₹tly, President Donald Trump's announcement of a 90-day pause on implementation of reciprocal tariffs led to a recovery in global equity markets.

Secondly, the weakness in the dollar halted and reve₹ed the momentum trade towards US that was witnessed after Trump's victory in the elections. The steep decline in the dollar index from 111 on January 11 to 99 recently facilitated FPIs inflows to emerging markets, particularly India, he added.

On the other hand, FPIs took out ₹ 13,314 crore from debt general limit and withdrew ₹ 5,649 crore from debt voluntary retention route during the period under review.