Overview

• Foreign portfolio investors (FPIs) recorded a net investment of ₹14,167 crore in Indian equities by May 9, continuing the momentum from April's ₹4,223 crore inflow.
• This marks a reversal from heavy outflows in the first quarter of 2025, narrowing the year's net outflow to ₹98,184 crore so far.
• Key drivers include a weakening U.S. dollar, strong GDP growth in India, declining domestic inflation, and an improving U.S.-India trade outlook.
• FPIs engaged in 16 consecutive trading days of net equity purchases before a brief ₹3,798 crore sell-off on May 9 linked to escalated India-Pakistan tensions.
• While equity inflows remain robust, debt investments have been minimal, with FPIs withdrawing ₹3,725 crore from the general debt limit but investing ₹1,160 crore in the voluntary retention route.