FPIs continue bullish trend, invest ₹3,839cr in Indian equities
What's the story
Foreign Portfolio Investors (FPIs) have continued their buying spree in the Indian stock market, pouring in ₹3,839 crore so far this month. The trend marks the fourth consecutive month of positive inflows, following April's ₹4,223 crore and peaking at nearly ₹20,000 crore in May. The sustained investment has helped lift the market after a period of decline. However, it's worth noting that the Sensex is still around 3,500 points away from its all-time high.
Market shift
Sensex still around 3,500 points away from its all-time high
After a slow start to 2025, with FPIs even selling earlier this year, the trend has reversed since April. VK Vijayakumar of Geojit Financial Services noted that while FPIs could look at cheaper overseas markets in the future, their current investments are shaping India's market sentiment. Last year's gains were much higher (up to 17%), making these inflows crucial amid global market unpredictability.
Investment strategy
FPIs have remained active in the market
Despite heavy selling by FPIs at the start of 2025, they have remained active in the market. Vijayakumar highlighted that Indian indices like Nifty and Sensex had bounced back with 9-10% gains in 2024. While global tariff concerns may pose challenges ahead, these inflows are keeping investor sentiment strong for now.