Foreign funds inflow into Indian equities continued as Foreign Portfolio Investors (FPIs) made strong investments in the Indian equity markets this week, bringing in Rs 4,452.3 crore between May 13 and May 16, as per the data available with the National Securities Depository Limited (NSDL).
The highest inflows during the week were recorded on Friday, when FPIs invested a net amount of Rs 5,746 crore in Indian equities. However, the trend was not consistent throughout the week. On Tuesday, the markets saw a net outflow of Rs 2,388 crore, indicating some level of uncertainty or profit booking by foreign investors.
With this week’s inflows, the total FPI investment into Indian equities so far in the month of May has reached Rs 18,620 crore. The strong inflows suggest improved investor confidence, possibly driven by easing global concerns, stable domestic growth prospects, or expectations around election results.
What Else For Foreign Funds?
Despite the positive trend in May, FPIs continue to be net sellers in 2025. Since the beginning of the year, the total net FPI outflow stands at Rs 93,731 crore. This is mainly due to heavy selling during the first three months of the year, January, February, and March, when global uncertainties and rising U.S. bond yields impacted investor sentiment.
Net investments by FPIs in Indian equities stood at Rs 4,223 crore during April, indicated a turnaround in foreign investment trends.
In previous months, NSDL data showed that FPIs had sold stocks worth Rs 3,973 crore in March. In January and February, they had sold equities worth Rs 78,027 crore and Rs 34,574 crore, respectively. The turnaround in April comes after months of net outflows and reflects renewed investor confidence in the Indian economy.
In the last week, the benchmark indices witnessed a promising uptrend rally. The Nifty ends 4.2% higher, while the Sensex was up by 2875 points. Among sectors, all the major sectoral indices traded in positive territory, but Defence, Reality, and Capital Market indices outperformed. Defence gained 17%, Capital Market 11.50% and Reality 10.85%.
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