Going forward, FPIs are likely to continue their investment in India. However, at higher levels they might sell since valuations are getting stretched, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said
New Delhi: Foreign investors pumped in more than Rs 30,000 crore in the Indian stock and debt market in May, amid the possibility of a bilateral trade deal with the US soon, a weak US dollar and better-than-expected domestic corporate earnings.
According to NSDL data, foreign portfolio investors (FPIs) invested a total of Rs 30,950 crore in the Indian equity market and debt market last month.
Out of this, FPIs invested Rs 19,860 crore in the equity market. Earlier in April, foreign investors had pumped in Rs 4,223 crore. Due to the sell-off from January to March, net foreign investment remains negative with Rs 92,491 crore in 2025.
Between January and March 2025, FPIs sold equity worth Rs 1.16 lakh crore in the stock market.
This positive momentum follows a net investment of ₹4,223 crore in April, data with the depositories showed.
Prior to this, foreign portfolio investors (FPIs) had pulled out ₹3,973 crore in March, ₹34,574 crore in February, and a substantial Rs 78,027 crore in January.
Going forward, FPIs are likely to continue their investment in India. However, at higher levels they might sell since valuations are getting stretched, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.
According to the data with the depositories, FPIs made a net investment of ₹19,860 crore in equities in May. The latest flow has helped narrow the outflow to ₹92,491 crore in 2025 so far.
India’s equity markets witnessed a sharp resurgence in FPI activity in April. The sustained buying spree that began in mid-April continued in May too, reflecting renewed investor confidence.
Himanshu Srivastava, Associate director – Manager Research, Morningstar Investment, said that several factors influenced FPI flows in May. Globally, easing US inflation and expectations of interest rate cut by the Federal Reserve made emerging markets like India more attractive. Domestically, India’s strong GDP growth, robust corporate earnings, and policy reforms enhanced investor confidence.
“Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FII inflows into India,” Vijayakumar said.
In terms of sectors, FPIs have been buyers in autos, components, telecom and financials in the first half of May.