FPI Invests ₹19,860 Crore in Indian Equity Markets in May 2025
Foreign Portfolio Investors (FPIs) have demonstrated renewed confidence in the Indian markets. According to the latest data from National Securities Depository Limited (NSDL), FPIs invested ₹19,860 crore in the Indian equity markets in May 2025. This marks the highest monthly inflow of the year so far, significantly higher than the ₹4,223 crore invested in April.
This surge reflects a strong positive sentiment towards India among foreign investors. Before this, FPIs had pulled out capital in the initial months of 2025: in March they withdrew ₹,973 crore, in February ₹3,34,574 crore, and in January ₹78,027 crore. However, the trend reversed starting mid-April, and the momentum continued through May.
FPI Investments Beyond Equities
In addition to stocks, FPIs also invested ₹19,615 crore in bonds under the normal limit and ₹1,899 crore under the voluntary retention route during May. In the week from May 26 to May 30, foreign investors bought stocks worth ₹6,024.77 crore. Except for June 6, where FPIs sold ₹1,758.23 crore, all trading sessions showed positive sentiment.
Outlook for FPI Investment
V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that FPIs are expected to continue investing in India, though they might take profits at higher levels. With this recent investment, the total FPI outflow from equities in 2025 has reduced to ₹92,491 crore.
Reasons Behind the Confidence
India’s strong GDP growth, corporate earnings, and policy reforms have boosted investor confidence. Factors such as a weakening dollar, slowing US and Chinese economies, declining inflation, and stable interest rates are further contributing to India's appeal for foreign investors.
During the first half of May, FPIs showed particular interest in sectors like automobiles, auto components, telecommunications, and financial services.