Foreign Portfolio Investors (FPIs) are showing renewed interest in the Indian stock market. Since the beginning of May 2025, FPIs have invested approximately ₹18,620 crore in Indian equities. This increased investment signals continued b confidence in the Indian market among foreign investors.
Significant Investment Surge in May Following April
Last month, April 2025, also witnessed a surge in FPI activity, with approximately ₹4,223 crore invested in the Indian equity market. This marked the first net inflow into Indian equities after significant withdrawals in March, February, and January.
- January Withdrawal: ₹78,027 crore
- February Withdrawal: ₹34,574 crore
- March Withdrawal: ₹3,973 crore
Following this new funding, the total net withdrawal for 2025 so far has decreased to ₹93,731 crore.
Increased Investment Driven by Improved Global Conditions and Ceasefire
Analysts attribute this renewed investment to improved risk sentiment stemming from reduced geopolitical tensions globally and a 90-day agreement on tariffs. This has directly impacted emerging markets like India, where FPIs are becoming active again.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the b domestic position and sound fundamentals of the Indian market suggest that FPI buying may continue in the coming period. This is expected to bolster blue-chip stocks.
Limited Interest in the Debt Market Remains
While FPIs are showing a preference for the equity market, their activity in the bond market remains relatively subdued.
- Under the general limit, withdrawals of ₹6,748 crore have been recorded so far in May.
- Investments of ₹1,193 crore were recorded through the Voluntary Retention Route (VRR).
Recent FPI investment activity indicates that foreign investors view the Indian equity market as a reliable and profitable option. As global stability improves and domestic economic indicators strengthen, further investment is expected to flow into the market.
