FPIs turn net buyers with Rs 8,500-crore infusion amid renewed market optimism

Foreign Portfolio Investors (FPIs) made a strong comeback to Indian equities last week, pumping in nearly Rs 8,500 crore amid signs of renewed confidence driven by India's economic resilience and relative immunity to global trade shocks.
During the holiday-shortened trading week ended April 18, FPIs made net investments of Rs 8,472 crore in the equity markets, according to data from depositories. This included a withdrawal of Rs 2,352 crore on April 15, followed by a robust inflow of Rs 10,824 crore over the next two sessions, news agency PTI reported.
Trading activity last week was limited to just three sessions — April 15 to 17 — as markets were shut on Monday and Friday for Ambedkar Jayanti and Good Friday, respectively.
Sentiment shift amid global headwinds
Despite heavy outflows earlier this month, the latest trend suggests a possible turnaround in FPI sentiment. However, the sustainability of these inflows will depend on global macroeconomic stability, clarity on U.S. trade policy, and continued strength in India's domestic growth trajectory, said Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India.
So far in April, FPIs have pulled out Rs 23,103 crore from equities, contributing to total outflows of Rs 1.4 lakh crore since the beginning of 2025. March had seen net FPI outflows of Rs 3,973 crore, while February and January witnessed even larger withdrawals of Rs 34,574 crore and Rs 78,027 crore, respectively.
Dollar weakness and growth differential driving inflows
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, attributed the recent FPI buying to two key factors: a weakening dollar index, which has fallen to around the 100 mark, and expectations of further dollar softness. This has prompted global investors to shift capital towards emerging markets like India.
Additionally, Vijayakumar pointed out that while the U.S. and China are expected to post subdued economic growth in 2025, India is projected to grow at 6 per cent in FY26 even in an adverse global environment. This relative economic outperformance is likely to translate into better market returns as well.
He added that FPIs are expected to focus on domestic consumption-led sectors, with increased interest in financials, telecom, aviation, cement, select auto stocks, and healthcare.