FPIs turn net buyers with Rs 8,500-crore infusion amid renewed market optimism

Foreign portfolio investors (FPIs) made a strong comeback in Indian equities last week, pumped for about Rs 8,500 crore amid signs of new confidence in India’s economic flexibility and global trade shock.
During the holiday-creative trading week ended on April 18, FPIS made a net investment of Rs 8,472 crore in equity markets as per data. News agency PTI said that it included a return of Rs 2,352 crore on April 15, followed by a strong arrival of Rs 10,824 crore in the next two sessions.
Last week, trading activity was limited to only three sessions – 15 to 17 April – because the markets were closed for Ambedkar Jayati and Good Friday respectively on Mondays and Fridays.
A spirit change between global headwind
Despite the huge outflow earlier this month, the latest trend suggests possible changes in FPI spirit. However, the stability of these flows will depend on global macroeconomic stability, clarity on American trade policy and continuous strength in India’s domestic development trajectory, Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India said.
So far in April, FPI has withdrawn Rs 23,103 crore from equity, contributing to a total outflow of Rs 1.4 lakh crore from the beginning of 2025. March saw the outflow of pure FPI of Rs 3,973 crore, while February and January also saw Rs 34,574 crore and Rs 78,027.
Dollar weakness and growth difference driving flow
VK Vijaykumar, the main investment strategist at Geogit Financial Services, attributed the recent FPI to buy for two major factors: a weak dollar index, which has fallen around 100 points, and further dollars expectations. This has inspired global investors to move capital towards emerging markets like India.
Additionally, Vijaykumar said that while the US and China are expected to be promoted after economic growth in 2025, India is expected to increase 6 percent in financial year 26 in an adverse global environment. This relative economic outperform is also likely to translate into better market returns.
He said that FPI is expected to focus on domestic consumption -led areas, which increases interest in financial, telecom, aviation, cement, selected auto stock and healthcare.