Surge in FPI Inflows Bolsters Indian Markets Amidst Easing Global Concerns

This week, Foreign Portfolio Investors (FPIs) infused Rs 4,452.3 crore into the Indian equity markets, as per the latest data from the National Securities Depository Limited (NSDL). The apex of these inflows was observed on Friday, with net investments reaching Rs 5,746 crore. However, the flow of investments wasn't uniform; Tuesday recorded a net outflow of Rs 2,388 crore, hinting at potential uncertainty or profit-taking actions by foreign investors.

These injections bring the total FPI investments in Indian stocks to Rs 18,620 crore for May, signaling elevated investor confidence possibly influenced by diminishing global concerns, steady domestic economic growth, or optimistic election forecasts. Nevertheless, FPIs remain net sellers in 2025, with cumulative net outflows this year amounting to Rs 93,731 crore. This trend is attributed to significant selling in the year's first quarter, largely driven by global market unpredictability and increasing U.S. bond yields, which rattled investor sentiments.

While April saw FPIs reverse course with net inflows of Rs 4,223 crore into Indian equities, data from preceding months indicated hefty selling. Specifically, March recorded FPI sales of Rs 3,973 crore, while January and February saw disinvestments totaling Rs 78,027 crore and Rs 34,574 crore respectively. The relative inflows in April suggest a pivotal shift in investor confidence towards the Indian market.

The previous week witnessed a strong rally in India's major market indices, with the Nifty climbing 4.2% and the Sensex gaining 2,875 points. Sector-wise, defensive, real estate, and capital market indices outperformed, with defense stocks rising by 17%, capital markets by 11.50%, and real estate by 10.85%, showcasing a broad-based market optimism. (ANI)

(With inputs from agencies.)