Foreign Investors Pump Rs 31,000 Crore into Indian Equities Amid Market Optimism

The resurgence of FPIs as net buyers has also played a key role in Nifty’s 6 per cent recovery, highlighting a shift in sentiment after months of volatility.

In a positive turn for Indian equities, foreign portfolio investors (FPIs) have injected nearly Rs 31,000 crore into the stock market over the last six trading sessions. The influx of funds has been attributed to attractive valuations, a rising rupee, and improving macroeconomic conditions, reflecting renewed confidence in India’s growth outlook.

The resurgence of FPIs as net buyers has also played a key role in Nifty’s 6 per cent recovery, highlighting a shift in sentiment after months of volatility. While March initially witnessed net outflows from FPIs, this latest investment spree has trimmed the overall outflow to Rs 3,973 crore, indicating a reversal of selling pressure.

Why Are FPIs Returning?

Market experts cite several factors driving FPI inflows, including:

Attractive Stock Valuations: Indian equities had seen corrections, making them appealing for long-term investors.

Rupee Appreciation: A stronger rupee enhances returns for foreign investors, boosting sentiment.

Improving Macroeconomic Indicators: India’s GDP growth projections, inflation control, and stable monetary policies have reinforced confidence in its economic trajectory.

Impact on the Indian Stock Market

The infusion of fresh capital has significantly improved market liquidity and investor sentiment. The benchmark Nifty 50 index, which had been under pressure, has rebounded by 6 per cent, reflecting renewed optimism.

With foreign investors showing increased confidence, analysts suggest that if global economic conditions remain stable, FPI inflows could sustain in the coming months, further bolstering the Indian markets.