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
Summary/Static Details
Why in the news? NSDL Reports Robust FPI Investment in May Amid Economic Stability
Total FPI inflow (May 2025) ₹18,620 crore
Weekly inflow (May 13–16) ₹4,452.3 crore
Highest daily inflow ₹5,746 crore on May 16
2025 YTD FPI position Net outflow of ₹-93,731 crore
Sectoral Outperformers Defence (+17%), Capital Markets, Reality
April 2025 FPI trend Positive: ₹4,223 crore inflow

Shivam

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