This optimistic momentum follows a internet funding of Rs 4,223 crore in April, marking the primary influx after three months, information with the depositories confirmed.
Previous to this, overseas portfolio buyers (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a considerable Rs 78,027 crore in January.
Going forward, international macros (declining greenback, slowing US and Chinese language financial system) and home macros (excessive GDP progress and declining inflation and rates of interest) will facilitate rising FPI influx into the Indian fairness, VK Vijayakumar, Chief Funding Strategist, Geojit Investments, mentioned.
Nonetheless, debt inflows are prone to stay very low, he added.
Based on the info with the depositories, Overseas Portfolio Traders made a internet funding of Rs 14,167 crore in equities on this month (until Could 9). The most recent circulation has helped slim the outflow to Rs 98,184 crore in 2025 to date. India’s fairness markets witnessed a pointy resurgence in FPI exercise in April, signalling a marked reversal from the outflow seen earlier this 12 months. The momentum continued in Could too. This renewed momentum was underpinned by a mix of beneficial international cues and sturdy home fundamentals that bolstered investor confidence, Himanshu Srivastava, Affiliate director – Supervisor Analysis, Morningstar Funding, mentioned.
One of many key catalysts behind this pattern has been the bettering outlook for a possible US-India commerce settlement. Moreover, the weakening of the US greenback, alongside a strengthening Indian rupee, enhanced the enchantment of Indian property to international buyers, he mentioned.
Moreover, upbeat quarterly earnings from distinguished Indian corporates added to the optimistic sentiment, he added.
“The hallmark of FPI funding in current days has been the sustained shopping for by them. They purchased fairness via the exchanges consecutively for 16 buying and selling days ended Could 8 for a cumulative quantity of Rs 48,533 crore. They bought for Rs 3,798 crore on Could 9 when the India-Pak battle received escalated,” Geojit Investments’ Vijayakumar mentioned.
However, FPIs took out Rs 3,725 crore from debt basic restrict and invested Rs 1,160 crore in debt voluntary retention route through the interval beneath overview.