FPIs turn net buyers; inject Rs 8,500-cr in holiday-shortened week

Foreign investors have infused nearly Rs 8,500 crore in the country's equity markets last week, after a phase of heavy outflows earlier in the month, supported by renewed investor confidence, resilient domestic economy and relative insulation from global trade disruptions.

During the holiday-truncated week ended April 18, Foreign Portfolio Investors (FPIs) made a net investment of Rs 8,472 crore in equities.

This includes withdrawal of Rs 2,352 crore on April 15, but investment of Rs 10,824 crore in the following two days, data with the depositories showed.

While the recent uptick in FPI activity signals a potential shift in sentiment, the sustainability of these flows will hinge on the evolving trajectory of global macroeconomic conditions, stability in the US trade policy, and the continued strength of India's domestic growth outlook, Himanshu Srivastava, Associate director - Manager Research, Morningstar Investment, said.

During the week, trading took place on just three days from April 15 to 17 -- Tuesday, Wednesday, and Thursday. The stock market was closed on Monday and Friday due to Ambedkar Jayanti and Good Friday, respectively.

Overall, FPIs pulled out Rs 23,103 crore from the equities in April so far, taking the total outflow to Rs 1.4 lakh crore since the beginning of 2025, data showed.

The initial part of the month was marked by aggressive FPI selling, driven largely by global uncertainties stemming from the US tariff policy developments.

However, renewed investor confidence was supported by India's resilient domestic economy, relative insulation from global trade disruptions, and comparatively attractive valuations given recent correction in the Indian equity markets, Srivastava said.

This reversal in FPI activity has been caused by two important factors.

Firstly, decline in the dollar index to around 100 level and the expectation of further weakness in the dollar are nudging FPIs away from the US to emerging markets like India, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.

Secondly, both the US and China are likely to report subdued growth this year, while India is expected to clock a growth rate of 6 per cent in FY 26 even in an unfavourable global environment. This relative outperformance of India in growth can lead to outperformance in the market, too, he added.

In March, FPIs withdrew Rs 3,973 crore and FPIs took out Rs 34,574 crore, while in January, the outflow was higher at Rs 78,027 crore.

Geojit's Vijayakumar said that the focus of all investors including FPIs is likely to be domestic consumption themes like financials, telecom, aviation, cement, select autos and healthcare.