Foreign investors have infused nearly Rs 31,000 crore in the Indian equity markets in the last six trading sessions in March, data with the depositories said.
The re-emergence of Foreign Portfolio Investors (FPIs) as buyers contributed to a smart recovery of about 6 per cent in benchmark index Nifty. The development is primarily due to attractive valuations, appreciation in the rupee and improvement in macroeconomic indicators.
This latest infusion has also helped reduce the overall outflow for March to Rs 3,973 crore. Notably, the FPIs had pulled out Rs 34,574 crore in February and Rs 78,027 crore in January.
As per the data, FPIs have pulled out Rs 3,973 crore from Indian equities in March. However, in the last six trading sessions (from March 21 to March 28), they put in Rs 30,927 crore.
Notably, the global trade tensions and uncertainties surrounding U.S. economic policies led investors to reallocate capital to perceived safer assets.
Since the starting of October 2024, a pronounced shift has occurred with FPIs withdrawing significant investments from the Indian equity markets, which stood at approximately Rs 15 billion (between Apr 1, 2024 and Mar 27, 2025), marking the highest-ever recorded outflow.
This exodus contributed to a significant decline in the Indian equity markets from its late-September peak.
While the recent inflows have boosted market sentiment, the broader picture for India’s equity markets in financial year 2024-25 reflects significant fluctuations in FPI flows.