Mumbai: Foreign portfolio investors (FPIs) put Rs 19,860 crore into Indian equities in May. This shows rising confidence in India’s stock market. In April, FPIs had invested Rs 4,223 crore. Earlier in March and February, they had taken money out.
Big Shift After Early 2025 Outflows
At the start of 2025, FPIs had pulled out a lot of money—Rs 78,027 crore in January and Rs 34,574 crore in February. But since mid-April, their mood changed. Buying has been strong in May too.
Why the Sudden Interest?
Experts say both global and Indian reasons are behind this.
US inflation is slowing.
A Fed rate cut is expected.
India's GDP is growing fast.
Company profits are strong.
Reforms are helping.
What Are They Buying?
In May, FPIs mostly bought shares in auto, auto parts, telecom, and finance companies. They also put money in India’s debt markets—Rs 19,615 crore in the general category and Rs 1,899 crore in voluntary retention.
Caution Ahead?
Experts warn that if markets go much higher, FPIs might start selling. Stock prices are already looking expensive, so some profit booking may happen.
