FPIs On Course To Become Net Buyers In India For Third Month | Economy News
New Delhi: Foreign Portfolio Investors (FPIs) are on course to become net buyers in Indian stock markets for the third straight month in June. In January, February, and March, they were net sellers throughout. Since April, however, they have turned net buyers in Indian equities.
The latest data from the National Securities Depository Limited (NSDL) shows that FPIs have bought stocks worth ₹8,915 crore in June so far. In April and May, FPIs accumulated stocks worth ₹4,223 crore and ₹19,860 crore, respectively.
FPIs have fueled the recent bull run in the stock market following a sharp slump. By definition, Foreign Portfolio Investment involves investors buying foreign financial assets.
“A declining dollar is always positive for emerging market equities; this encouraged FIIs to invest in India. The FII buying figure for June, including purchases through the exchange, primary market, and other categories, stood at ₹8,915 crore through the 27th,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“FIIs were buyers in financials, capital goods, and realty stocks, while they were sellers in FMCG, consumer durables, and IT. FII buying has strengthened large-cap stocks, helping the Nifty and Sensex scale new highs for 2025. However, FIIs continued to sell in the bond market, and this trend is likely to continue due to the low yield differential between US and Indian bonds. Ample liquidity and investor optimism have the potential to sustain the rally, though high valuations remain a limiting factor and could trigger profit booking,” Vijayakumar added.
The benchmark Sensex is now about 2,000 points below its all-time high of 85,978 points. At one point, the Sensex had fallen nearly 13,000 points from its peak. Recent FPI buying has helped support the indices.
Indian stock markets have outperformed global markets in recent weeks, even as volatility persisted globally due to concerns over potential upcoming US reciprocal tariffs as the July 9 deadline approaches. A favorable inflation figure in India has also provided some support to domestic equity indices.
In 2024, both the Sensex and Nifty have posted gains of around 9–10%. In 2023, they rose by 16–17% cumulatively, while in 2022, the gains were a modest 3% each.
