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A notable uptick: FPI inflows so far in May are the highest in 8 months

India-Pak ceasefire, prospects of US trade deal cause rebound

FPI, Foreign portfolio investment
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So far this month, FPIs have been net buyers of Rs 14,256 crore, the highest since September 2024. Photo: Shutterstock

Sundar Sethuraman Mumbai

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May has seen a notable uptick in foreign portfolio investor (FPI) flows into India — the strongest in eight months — despite the ongoing volatility and global uncertainty. So far this month, FPIs have been net buyers to the tune of ₹14,256 crore — the highest monthly inflows since September 2024. 
This rebound has been driven by factors including the India-Pakistan ceasefire, optimism around a potential US trade deal, and a surge in block deals. The weakening of the US dollar against global currencies has also enhanced the appeal of emerging markets (EMs), as witnessed in Taiwan and Brazil drawing