Foreign Investments Surge in India Amid Global Market Uncertainties

In an unprecedented development, foreign investments in Indian markets soared to new heights in May 2025, as per the latest data from the National Securities Depository Ltd (NSDL). The month saw net foreign portfolio investment (FPI) inflows amounting to Rs 19,860 crore, setting a record for the highest inflow this year.

The week spanning May 26 to May 30 continued the positive trend, with foreign investors pouring in Rs 6,024.77 crore. All trading days of the week observed positive inflows with the exception of Friday, which recorded a slight outflow of Rs 1,758.23 crore. Despite the remarkable performance in May, the overall FPI for the year 2025 remains negative, with net outflows totaling Rs 92,491 crore from January to May. However, the considerable inflows in May suggest a potential improvement in foreign investor sentiment.

Experts link the recent uptick in FPI activity to the depreciation of the US dollar and an improving outlook for the Indian stock market. India's solid economic fundamentals are a magnet for global investors, although foreign portfolio investments remain influenced by global economic trends and external headwinds.

The year began on a cautious note for FPIs, with significant sell-offs in previous months: Rs 3,973 crore in March, Rs 78,027 crore in January, and Rs 34,574 crore in February. However, May's positive momentum could signal a trend reversal if global conditions remain stable. As May concluded, the Indian stock market ended on a cautious note, with the Sensex closing 182 points lower at 81,451.01, and the Nifty 50 down by 83 points to settle at 24,750.70, against a backdrop of mixed global cues. (ANI)

(With inputs from agencies.)