Foreign investors infused ₹17,425 crore into India's equity markets last week, buoyed by favourable global cues and strong domestic macroeconomic fundamentals.
This followed a net investment of ₹8,500 crore in the preceding holiday-truncated week ending 18 April.
Globally, steady performances across major markets, expectations of a pause in the US Federal Reserve’s rate hikes, and a stable US dollar boosted risk appetite for emerging markets such as India.
Easing global trade tensions further lifted investor sentiment, said Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment.
Domestically, India’s resilient growth outlook, moderating inflation levels, and an optimistic forecast of an above-normal monsoon for 2025 strengthened confidence in the market. Together, these factors created an attractive environment for foreign investors, he added.
According to data from depositories, Foreign Portfolio Investors (FPIs) made a net investment of ₹17,425 crore in equities during the period from 21 to 25 April.
Despite this surge, FPIs have pulled out ₹5,678 crore from equities in April thus far, taking the total outflow to ₹1.22 lakh crore since the beginning of 2025, the data showed.
The early part of the month saw aggressive FPI selling, largely influenced by global uncertainties arising from developments in US tariff policies.
The reversal in FPI activity has coincided with heightened tensions between India and Pakistan following the Pahalgam terror attacks.
This renewed interest in Indian equities has been driven by two major factors. Firstly, the sustained rise in the dollar, which had earlier triggered a shift towards US equities, has now reversed, with the dollar index falling from a peak of 111 in mid-January to around 99.
Secondly, the sharp decline anticipated in US growth this year is expected to impact corporate earnings there, while the Indian economy is projected to remain resilient, maintaining a growth rate above 6 per cent, coupled with a recovery in corporate earnings, said V K Vijayakumar, Chief Investment Strategist at Geojit Investments.
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