Foreigner Portfolio investors (FPI) have confidence in the Indian stock market. FPI has invested Rs 19,860 crore in Indian shares in May due to favorable economic indicators and strong domestic fundamentals. According to depository data, in April, the FPI had invested a net investment of Rs 4,223 crore in the shares. At the same time, in March, foreign portfolio investors had withdrawn Rs 3,973 crore from shares, Rs 34,574 crore in February and Rs 78,027 crore in January. The main investment strategist VK Vijaykumar, the main investment strategist of the Jiojit Investment, said, “FPIs will continue their investment in India. However, they can sell at a high level. ”
19,860 crore rupees in shares in May
According to depository data, the FPI has invested a net investment of Rs 19,860 crore in shares in May. Following this latest flow in 2025, the withdrawal figure of FPI from shares has come down to Rs 92,491 crore. In April, the Indian stock market saw a boom in FPI activities. The process of buying, which started in mid -April, continued in May, which reflects the new trust of investors. Associate Director of Morningstar Investment- Manager Research Himanshu Srivastava said that there have been many factors of FPI flow in May. Globally, the expectations of US inflation decrease and the Federal Reserve reduction in interest rates have made emerging markets such as India more attractive.
Why FPI getting attracted?
At the domestic level, India’s strong GDP (GDP) growth, better quarterly results of companies and policy reforms have increased the trust of investors. Vijaykumar said, “Domestic major factors such as decline in dollars, sluggishness in US and Chinese economies, high growth, declining inflation and interest rates, are increasing the attraction of FPI towards India. Talking about various sectors, the FPI has invested in auto, Kalpiza, Telecom and Financial Sector in the first fortnight of May. In addition to the stock during the period under review, FPI has invested Rs 19,615 crore under the general limit in bonds and Rs 1,899 crore from voluntary retention.
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