Foreign investors have poured in Rs 17,425 crore into India’s equity markets in the week of April 21 to April 25, bolstered by a combination of favourable global factors and strong domestic economic fundamentals.
This follows a net investment of Rs 8,500 crore in the previous holiday-shortened week ending April 18, news agency PTI reported.
Globally, steady performances in major markets, expectations of a pause in US Federal Reserve rate hikes, and a stable US dollar have boosted risk appetite for emerging markets like India. Additionally, easing global trade tensions have further lifted investor sentiment, according to Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment.
On the domestic front, India’s resilient growth outlook, moderating inflation, and an optimistic forecast for an above-normal monsoon in 2025 have strengthened confidence in the market, making it an attractive investment destination for foreign investors, Srivastava added.
However, the overall investment picture remains mixed. According to depository data, FPIs have pulled out Rs 5,678 crore from equities in April so far, bringing the total outflow for 2025 to Rs 1.22 lakh crore. The early part of the month saw aggressive FPI selling, driven primarily by global uncertainties surrounding the US tariff policies.
This renewed interest in FPIs can be attributed to two main factors, as explained by V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments. First, the sustained rise in the US dollar, which had prompted momentum trades toward US equities, has reversed. The dollar index has dropped from a peak of 111 in mid-January 2025 to around 99 now.
Second, a sharp decline in US economic growth expectations this year is anticipated to impact corporate earnings in the US, while India’s economy is expected to remain resilient, with growth projected at over 6% and a recovery in corporate earnings, Vijayakumar said.
This follows a net investment of Rs 8,500 crore in the previous holiday-shortened week ending April 18, news agency PTI reported.
Globally, steady performances in major markets, expectations of a pause in US Federal Reserve rate hikes, and a stable US dollar have boosted risk appetite for emerging markets like India. Additionally, easing global trade tensions have further lifted investor sentiment, according to Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment.
On the domestic front, India’s resilient growth outlook, moderating inflation, and an optimistic forecast for an above-normal monsoon in 2025 have strengthened confidence in the market, making it an attractive investment destination for foreign investors, Srivastava added.
However, the overall investment picture remains mixed. According to depository data, FPIs have pulled out Rs 5,678 crore from equities in April so far, bringing the total outflow for 2025 to Rs 1.22 lakh crore. The early part of the month saw aggressive FPI selling, driven primarily by global uncertainties surrounding the US tariff policies.
This renewed interest in FPIs can be attributed to two main factors, as explained by V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments. First, the sustained rise in the US dollar, which had prompted momentum trades toward US equities, has reversed. The dollar index has dropped from a peak of 111 in mid-January 2025 to around 99 now.
Second, a sharp decline in US economic growth expectations this year is anticipated to impact corporate earnings in the US, while India’s economy is expected to remain resilient, with growth projected at over 6% and a recovery in corporate earnings, Vijayakumar said.
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