FPIs invest over ₹31,000cr in Indian equities last week
30 Mar 2025

Foreign Portfolio Investors (FPIs) have pumped in between ₹30,927 crore and ₹32,576 crore in the Indian equity markets in the last six trading sessions of March.

The inflow is largely due to attractive valuations, a strengthening Rupee, and improvements in macroeconomic indicators.

The renewed interest from FPIs has led to a massive recovery of about 6% in the benchmark index Nifty.

FPI inflow reduces March outflow
Inflow impact

With the latest capital infusion, the total outflow for March now stands at ₹3,973 crore, as per depository data.

This is a major improvement compared to the last months when FPIs withdrew ₹34,574 crore in February and ₹78,027 crore in January.

The future trend of FPI flows will largely depend on the reciprocal tariffs FPIs expect from the Trump administration on April 2.

Shift in FPI strategy influenced by market factors
Strategy change

The transition from relentless selling to subdued buying indicates a change in FPIs' strategy, driven by attractive valuations after a 16% correction from the September 2024 peak.

The recent appreciation of the Rupee and favorable macroeconomic indicators like GDP growth, industrial production (IIP), and CPI inflation also contributed to the same.

Inflow and outflow trends in FY 2024-25
Market fluctuations

In FY 2024-25, India's equity markets have witnessed massive volatility in FPI flows.

Initially, FPIs were net buyers owing to India's robust economic growth and favorable market conditions.

However, starting October 2024, a major shift was witnessed with FPIs pulling out large investments from the Indian equity markets, which stood at approximately $15 billion (between April 1, 2024 and March 27, 2025).