Foreign investors make notable return to Indian equity markets in April
Published on Apr 26, 2025
By IANS
- NEW DELHI — Foreign investors have made a notable return to Indian equity
markets this month, emerging as net buyers over the past two weeks, analysts
said on Saturday.
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- In just the last seven trading sessions, foreign
portfolio investors (FPIs) have turned decisively positive on Indian equities.
This shift is largely attributed to a weakening US dollar, revisit of tariff
agreements and a renewed sense of optimism surrounding India’s economic
trajectory.
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- “Amid a challenging global backdrop, marked by sluggish
growth in major economies like the United States and China, India continues to
stand out higher for its economic resilience,” said Manoj Purohit, Partner and
Leader, FS Tax, Tax and Regulatory Services, BDO India.
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- India is forecast to grow at a robust rate of over 6 per
cent in FY26 and remains the only fastest-growing economy, making it a
compelling destination for global investors.
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- “FPI inflows are expected to remain strong in the near
term, providing additional support to the ongoing market rally. As global
investors reassess their strategies, India’s economic fundamentals and earnings
potential position it as a beacon of stability and growth in a turbulent events
happening globally,” Purohit explained.
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- This month (till April 24), FPIs purchased equities worth
Rs 22,716.43 crore while they sold equities worth Rs 17,196.33 crore, with net
investment of Rs 5,520.1 crore.
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- Last month, FPIs ramped up buying in the second half of
March 2025, driving a recovery in select sectors. BFSI led the inflows with a
turnaround from $380 million selling to $2,055 million buying, netting $1,675
million for the month.
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- Telecommunications and metals and Mining also saw net
inflows of $360 million and $219 million, respectively, according to a recent
note by Bajaj Broking. Overall, FPI interest remained focused on BFSI, with
most other sectors facing continued selling pressure.
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- With a strong economic outlook, policy reforms and a
resilient market, India remains an attractive destination for global capital.
The government’s continued focus on infrastructure, digital growth, and ease of
doing business further boosts investor confidence.
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- The recent move by RBI to keep the existing corporate
bond and G-sec limits unchanged for foreign portfolio investors (FPIs) is a
testimony of the government’s intent to keep gateway open for offshore
participants to continue infusing funds in India market.
