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Foreign Investors Return to Indian Equities with Rs 17,425 Crore Infusion in Late April

A softer US dollar, easing trade tensions, and strong domestic growth forecasts drive renewed FPI interest after months of heavy selling.

Indian equity

Overview

  • Foreign portfolio investors (FPIs) injected Rs 17,425 crore into Indian equities between April 21 and April 25, marking a decisive shift after sustained outflows earlier in the year.
  • Cumulative FPI outflows for 2025 still stand at Rs 1.22 lakh crore despite the recent inflows, highlighting the scale of earlier selling.
  • Domestic institutional investors (DIIs) now hold a larger share of Nifty 500 companies than FPIs, reflecting growing domestic confidence and resilience in the market.
  • Key drivers of renewed FPI activity include a weakening US dollar, easing global trade tensions, and India's projected GDP growth of over 6% in FY26.
  • The Reserve Bank of India has maintained FPI investment limits in corporate bonds and government securities, signaling continued policy support for foreign participation.