Foreign investors pump ₹19,860 cr into Indian equities in May, narrowing 2025 outflows

The sustained inflows mark a continuation of the positive trend that began in April, when FPIs made net investments of ₹4,223 crore, PTI reported, citing data from depositories.

This sharp reversal follows three consecutive months of heavy selling by foreign investors. In March, FPIs withdrew ₹3,973 crore, followed by a massive pullout of ₹34,574 crore in February and an even steeper ₹78,027 crore in January.

However, the renewed interest in April and May has helped narrow the net outflows for 2025 to ₹92,491 crore so far.

Analysts attribute the rebound in foreign inflows to improving global economic signals and confidence in India’s macroeconomic stability and growth outlook.

FPIs have turned net buyers across key sectors such as automobiles, auto components, telecom, and financials in the first half of May, indicating a broad-based return of confidence.

Beyond equities, FPIs also invested ₹19,615 crore in the debt general category and ₹1,899 crore under the voluntary retention route during the same period, reinforcing the view that foreign investors are re-engaging with India across asset classes.

Market observers expect FPI inflows to continue in the coming months, provided global risk sentiment remains stable and India’s policy environment continues to support economic expansion.