FPI Investment India: FPI investment restored after break- FPI Investment Restored after Break

Foreign portfolio investors (FPIs) resumed heavy purchases in Indian equity on Monday. He invested Rs 1,246.5 crore after the ceasefire in the weekend and the India-Pakistan tension decreased on the border.

Stock exchange data shows that the FPI had been a net buyer in 16 consecutive sessions from April 15 to last Thursday and invested Rs 49,000 crore in Indian shares. This led to a rise of about 10 percent in the Nifty. This is the series of their longest purchase since June-July 2023.

The investment came due to a decline in the dollar index due to the possibility of American tariffs and recession, which fell from the 2025 peak to 10 per cent. For this reason, the Indian rupee also strengthened and it recovered from the low of 88 in February and fell below Rs 84 this month.

Of Kotak Institutional Equities Co-head Sanjeev Prasad wrote in a note, a rapid increase in FPI investment in recent weeks reflects a positive sense of India among active and passive investors. We credits a rapid change in the situation of FPI by 2.5 per cent decline in the dollar index in the last one month and at the same time India is a relatively better market in view of the challenges of global growth.

Global Liquidity Tracker of Ilara Capital said that strong investment is also being seen in emerging markets like Taiwan, Brazil, China and South Korea. India had an investment in $ 32.6 million last week, while the earlier week came to $ 72.4 million. This is the highest figure since July 2024. However, experts have warned that the US bond yield and the dollar’s strong -running FPI investment may move up. A foreign brokerage strategist said, “foreign investment often runs from top down approach. It consists of American bond yields and dollars often the main drivers. They do not give much importance to evaluation. They also sell on attractive evaluation during the risk of avoiding risk and also buy again when the stock becomes expensive.

First Published – May 12, 2025 | 11:11 pm IST