Foreign Portfolio Investors (FPIs) have invested over Rs 10,000 crore in Indian stock markets this week, indicating strong interest from overseas investors in domestic equities. According to data from the National Securities Depository Limited (NSDL), FPIs invested Rs 10,073 crore in equities between April 28 and May 2.
The data shows that April saw net positive FPI inflows for the first time in 2025, with FPIs investing Rs 4,223 crore in Indian equities. This marks a turnaround from previous months where FPIs had sold stocks worth Rs 3,973 crore in March and Rs 78,027 crore and Rs 34,574 crore in January and February, respectively.
This positive momentum in April comes after months of net outflows, reflecting renewed investor confidence in the Indian economy. However, despite this strong inflow, overall market sentiment remained weak during the week. The tension at the India-Pakistan border weighed heavily on investor mood, limiting the positive impact of FPI investments.
While foreign investors are showing interest again, domestic uncertainties and geopolitical risks are keeping the markets under pressure. Many investors remain cautious and are adopting a wait-and-watch approach amid the ongoing border tensions.
Indian equity indices ended on a positive note on Friday, with the Nifty above 24,300 in a volatile session. At the close, the Sensex gained 259.75 points or 0.32 percent to end at 80,501.99, and the Nifty gained only 12.50 points or 0.05 percent to settle at 24,346.70.
The markets were very volatile, with the Nifty 50 index surging 120 points and the Sensex gaining 520 points during the trading session on Friday. However, the gains were washed off by the close. Market experts pointed out that the ongoing border tensions are the primary factor holding back a stronger rally in the Indian equities. They believe that in the absence of such geopolitical risks, the overall positive global sentiment would have supported a sharper upward move in domestic markets.
Ajay Bagga, a Banking and Market expert, told ANI, “Indian markets are now having the overhang of Indo-Pak tensions, otherwise Indian markets are ready to roll forward on good global cues and sustained dry intestine support. Leadership will move to IT, as Global recovery will help that.”
Reference : https://zeenews.india.com/personal-finance/fpis-infuse-over-rs-10000-crore-in-indian-equities-this-week-april-marks-first-month-of-net-positive-inflows-in-2025-2894904.html
