FPIS PUMP ₹ 19,000 Crore in Indian Stock Market in May, Highest Since Sept. Will the trend sustain?

Improved Domestic Fundamentals, Rising Corporate Earnings, And A Weaker Us Dollar Kept Foreign Investors Bullys on Indian Stocks for the Second Straight Month in May, Cementing India ‘ Equity market.

In May, ₹ 19,686 Crore through the Exchanges “> FPIS BOUGHT Indian Stocks Worth 19,686 Crore through the Exchanges, Marking The Highest Monthly Inflow Since Sppenmber, when they had pumped in nearly 50,000 Crore. FPIS Turned Into Net Buyers in April by infusing 4,223 Crore, according to the depositories data.

Before this, Foreign Portfolio Investors (FPIS) Had Pulled Out 3,973 Crore in March, 34,574 Crore in February, and a substantiial 78,027 Crore in January.

Domestic Institutional Investors also Remained Net Buyers in May, Investing 47,441 Crore. Strong Inflows from Both Domestic and Foreign Investors Pushed The Nifty 50 and Sensex to a 7-month high during the third week of May, Helping Both Indices Extend their Winning Streak to a third month and record money of the Losses Incurred during October and February.

Having larger been sellers in the months following Indian Benchmarks Hitting Record Highs in September, Foreign Investors Turned Bulish on Indian Stocks in April. This shift was driven by growing optimism that India’s domestically Driven Economy is better positioned to weather the Global Trade Slowdown compared to its peers.

Will FPI Inflows Continue in the Coming Months?

The sustainability of FPI inflows, as per the analysts, remain uncertain amid ongoing global trade tensions. While these tensions have eased in recent weeks, they could flare up again in the near term, as the 90-day pause on tarifs is set to end in july.

Major Export-Driven Economies are feeling the pressure and are currently in talks with the us to finalize trade agreements. India-Rus Trade Talks are Scheduled for June 5-6, 2025. Meanwhile, India is also proactively forging free trade agrements (ftas) (ftas), having recently signed a deal with the uk, and is it With the european union.

Nevertheless, Risks to FPI Inflows Persist – Including using us bonds, which have surgged recently amid concerns over the US fiscal outlook, potential earnings downgrades, downgrades Shocks -Al of which could derail the positive Momentum.

Clsa has cauted that India’s’Se “Safe Haven” Status Cold Fade If Us-China Tensions De-Socalate. Ultimately, Whiter FPIS Continue to Invest will depend on Global Factors Such as Us Monetary Policy and India’s Ability to MainTain Earnings Growth.

While The Current Buying Spree Reflects Strong Investor Confidence, History Suggessts That FPI Flows Can Be Highly Sensitive to Shifts in the Global Economic Landscape, as percent.

Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.