New Delhi, May 18 (HS): Foreign Portfolio Investors (FPI) appear to maintain their confidence in the domestic stock market during the month of May. Due to favorable global conditions and a recovery in the domestic market, FPIs have invested ₹18,620 crore in the stock market so far this month. This figure is encouraging in terms of market recovery, especially since in April foreign portfolio investors had only invested a total of ₹4,223 crore.
Since April, foreign investors started to make net investments in the domestic stock market after withdrawing for three consecutive months. Prior to that, in March, foreign portfolio investors withdrew ₹3,973 crore from the stock market, while in February they withdrew ₹34,574 crore, and in January they withdrew ₹78,027 crore. Thus, during the first three months of 2025, foreign portfolio investors had withdrawn a total of ₹1,16,574 crore from the domestic stock market. However, this trend changed in April, and now foreign investors are seen making net investments instead of withdrawing funds from the domestic stock market.
Market experts say that global conditions are increasingly favorable for the stock market. Additionally, the consolidation phase in the domestic stock market seems to be nearing its end. For this reason, there is a possibility that foreign portfolio investors will continue to purchase further. In particular, there are signs that the stocks of large companies listed in the stock market are likely to remain strong in the coming days. This could lead to sustained growth in the stock market. This bullish trend may also reflect in the buying activity of both domestic investors and foreign portfolio investors.
Prashant Dhami, Vice President of Dhami Securities, stated that foreign portfolio investors’ enthusiasm has increased after the ceasefire between India and Pakistan. Similarly, improvements in global sentiment are attributed to an agreement on tariffs between the United States and China. As a result, foreign investors have started to shift their money back towards emerging markets like India.
Hindusthan Samachar / Jun Sarkar
