- By Aditya Pratap Singh
- Mon, 05 May 2025 08:27 AM (IST)
- Source:JND
FPI Investment: Amid a combination of favourable global cues and strong domestic fundamentals, foreign investors pumped Rs 4,223 crore into the country’s equity market in April, becoming net buyers for the first time in three months. Foreign capital inflows last month followed net outflows of Rs 3,973 crore in March, Rs 34,574 crore in February and Rs 78,027 crore in January, respectively.
Foreign Portfolio Investors (FPIs) invested an overall of Rs 4,223 crore in equities, according to data available with the depository. The latest inflows helped reduce outflows to Rs 1.12 lakh crore so far in 2025. India’s equity markets witnessed a sharp revival of FPI activity in April, marking a stark contrast to the outflows seen earlier this year.
One of the main catalysts behind this trend is the improved outlook for US-India trade deals. The weakness of the US dollar and the strengthening of the Indian rupee have increased the attractiveness of Indian assets for global investors
Moreover, he said encouraging quarterly earnings from leading Indian corporates added to the positive sentiment. First, President Donald Trump’s announcement of a 90-day pause in the implementation of reciprocal tariffs has triggered a recovery in global equity markets.
Second, the weakness of the dollar has stopped and reversed trade momentum towards the United States, as was seen after Trump’s victory in the election. He said the sharp decline in the dollar index from 111 to 99 on January 11 had led to an increase in FPI flows to emerging markets, especially India, recently.
On the other hand, during the period under review, FPIS withdrew Rs. 13,314 crore from the normal borrowing limit and Rs. 5,649 crore from the voluntary retention route of borrowings.
Also read: Stock Market Today: Sensex Climbs 260 Points On FII Buying, Nifty Settles Over 24,340
(With Inputs From PTI)