FPIs invest ₹14,590cr in June, turn net-sellers in early July
What's the story
Foreign portfolio investors (FPIs) pumped ₹14,590 crore into India's equity market in June. This was the third consecutive month of investment, driven by improving global liquidity conditions and easing geopolitical tensions. The Reserve Bank of India (RBI)'s rate cut also contributed to this positive trend. However, FPIs turned net sellers in July and withdrew ₹1,421 crore during the month's first week.
Market outlook
FPI flows to remain volatile in near term: Experts
Vaqarjaved Khan, Senior Fundamental Analyst at Angel One, expects FPI flows to remain volatile in the near term due to tariff deadline developments and US data volatility.He said, "In the near term, FPI flows are expected to remain choppy on account of tariff deadline developments and US data volatility." Meanwhile, V K Vijayakumar from Geojit Investments stressed that FPIs's buying will depend on Q1 FY26 results indications.
Investment trend
Equity investment trend of FPIs in 2025
In June, FPIs made a net investment lower than May, when they had invested ₹19,860 crore, but higher than April's ₹4,223 crore. However, before this positive streak, FPIs had pulled out funds in March (₹3,973 crore), February (₹34,574 crore), and January (a whopping ₹78,027 crore). So far in 2025, the total outflow stands at ₹79,322 crore.
Market sentiment
Improving global liquidity conditions aided positive FPI sentiment
Himanshu Srivastava from Morningstar Investment noted that FPIs had a cautious yet improving stance in June 2025. He said the month started with significant outflows due to high US bond yields, trade tensions, expensive Indian stocks, and worsening geopolitical conditions. However, the latter half of the month saw a change as global liquidity conditions improved and geopolitical tensions eased.