FPIs continue to invest; inject ₹14,167 cr. in equities in May

Foreign investors show confidence in Indian equity market despite India-Pakistan tensions, driven by global cues and domestic fundamentals.

Foreign investors continue to show confidence in the country’s equity market, infusing ₹14,167 crore so far this month, largely driven by favourable global cues and robust domestic fundamentals.

Notably, this inflow has come despite the ongoing military tensions between India and Pakistan.

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This positive momentum follows a net investment of ₹4,223 crore in April, marking the first inflow after three months, data with the depositories showed.

Prior to this, foreign portfolio investors (FPIs) had pulled out ₹3,973 crore in March, ₹34,574 crore in February, and a substantial ₹78,027 crore in January.

“Going ahead, global macros (declining dollar, slowing U.S. and Chinese economy) and domestic macros (high GDP growth and declining inflation and interest rates) will facilitate increasing FPI inflow into the Indian equity,” V.K. Vijayakumar, Chief Investment Strategist, Geojit Investments, said.

However, debt inflows are likely to remain very low, he added.