NSDL Reports Robust FPI Investment in May Amid Economic Stability

Foreign Portfolio Investors (FPIs) have demonstrated a renewed interest in Indian equity markets, infusing ₹4,452.3 crore between May 13 and 16, 2025, according to data from the National Securities Depository Limited (NSDL). With this, the total net investment by FPIs in May has reached ₹18,620 crore, marking a significant rebound in foreign investor sentiment after months of outflows earlier this year.

Why in News?

This week saw a surge in FPI inflows into Indian equities, driven by easing global uncertainties and improved domestic economic outlook. Despite a turbulent start to 2025, the inflow of ₹18,620 crore in May points to a strong turnaround in investor confidence.

Key Highlights

• FPIs brought in ₹4,452.3 crore between May 13–16, 2025.
• ₹5,746 crore was infused on May 16 alone, the highest in the week.
• Despite inflows, there was a net outflow of ₹2,388 crore on May 13, indicating mixed market signals.
• Net investment by FPIs in Indian equities for May 2025: ₹18,620 crore.
• In April 2025, FPIs invested ₹4,223 crore, reversing previous negative trends.

Background

FPIs were net sellers in January to March 2025,

• January: ₹-78,027 crore
• February: ₹-34,574 crore
• March: ₹-3,973 crore
• Cumulative outflow in 2025 till date: ₹-93,731 crore

Sectoral Performance

• Defence sector: +17%
• Capital Markets: +11.50%
• Reality: +10.85%

All major sectoral indices traded positively last week.

Reasons Behind Inflows

• Easing global concerns
• Stable domestic economic indicators
• Anticipation of favourable election results
• Recovery in rupee performance and corporate earnings