FPI investment in India: Last week, foreign investors invested Rs 17,425 crore in the Indian stock market. This investment was due to favorable global and domestic economic conditions. Earlier, foreign portfolio investors (FPIs) had invested Rs 8,500 crore in the week ending April 18. However, that week was missed due to holidays. Experts say stability in global markets, expectations of the US Federal Reserve stopping interest rate hike and a stable US dollar boosted the enthusiasm of investors in emerging markets like India. Moreover, reduction in global trade tensions also boosted investor morale.
Strong economic growth in India, controlled inflation and forecast of a better than normal monsoon for 2025 further boosted investor confidence. Himanshu Srivastava, assistant director, Morningstar Investments, said that all these factors together make India an attractive destination for foreign investors. According to depository data, between April 21 and 25, FPIs made a net investment of Rs 17,425 crore in the stock market.
Selling in the beginning of the month, now investment picks up
However, FPIs have withdrawn Rs 5,678 crore from stocks so far in the month of April, and since the beginning of 2025, there has been a total withdrawal of Rs 1.22 lakh crore. At the beginning of the month, there was heavy selling by foreign investors due to uncertainty over the US tariff policy. Along with this, increased tension between India and Pakistan after the Pahalgam terror attacks also affected the market. But now the situation is changing. V.K., chief investment strategist at Geojit Investments. Vijayakumar said that due to two main reasons the inclination of investors has again increased towards India. First, the dollar index has fallen from a peak of 111 in January to around 99, reducing flows into US equities. Second, the US is expected to see a decline in economic growth this year, while India is expected to grow by more than 6 percent and improve corporate earnings.
This investment is a positive sign for the Indian stock market. The increasing confidence of investors reflects India’s economic stability.
(With inputs from agency)
First Published – April 27, 2025 | 3:08 PM IST
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