Foreign investors infuse over Rs 3,346 crore into Indian stock markets this week

IANS June 14, 2025 387 views

Foreign investors poured Rs 3,346 crore into Indian stocks this week, driven by the RBI’s surprise 50 bps rate cut. The move signals a pro-growth stance, boosting market confidence despite global volatility. Analysts highlight India’s strong fundamentals as a key reason for sustained FPI inflows. However, geopolitical tensions and rising oil prices continue to weigh on investor sentiment.

"The RBI’s rate cut reflects a pro-growth approach, attracting foreign investments" – Market Expert
New Delhi, June 14: Foreign portfolio investors (FPIs) brought in Rs 3,346.94 crore into the Indian stock markets this week, as investor confidence received a strong boost following the Reserve Bank of India's (RBI) rate cut.

Key Points

1

FPIs invest Rs 3,346 crore in Indian equities this week

2

RBI’s 50 bps rate cut boosts market sentiment

3

Global volatility persists amid geopolitical tensions

4

India remains a top FPI destination due to strong fundamentals

According to data from the National Securities Depository Limited (NSDL), FPIs were active buyers in the Indian equity market during the first three trading sessions of the week -- from June 9 to June 13.

The positive mood in the market was largely driven by the RBI’s decision to reduce the repo rate by 50 basis points to 5.5 percent, a move that many saw as a clear signal to support economic growth and improve market liquidity.

Market experts believe that this surprise rate cut has played a big role in attracting foreign investments, as it reflects a pro-growth approach from the central bank.

The Monetary Policy Committee’s (MPC) decision on June 6 has been welcomed by investors, who see it as a timely step to strengthen the economy and improve corporate earnings.

Even though global factors continue to affect market movements, India remains an attractive destination for foreign investment due to its strong fundamentals, policy support, and growing economy.

In May, foreign investors put Rs 19,860 crore into the Indian stock market, making it the best month of the year so far for foreign investment.

Meanwhile, according to analysts, Indian equity markets saw increased volatility this week and ended in the red.

While the week began on a positive note due to progress in US–China trade talks, that optimism faded quickly after Israel launched a strike on Iran’s nuclear facilities.

The incident triggered a wave of caution among global investors, pushing them toward safer assets like gold and US bonds.

Oil prices also jumped above $76 per barrel, breaking months of stability, as fresh concerns over supply disruptions emerged.

Reader Comments

R
Rahul K.
This is great news for our economy! The RBI's rate cut was a masterstroke to attract foreign investors. Just hope this money gets channeled into productive sectors and not just stock market speculation. 🇮🇳
P
Priya M.
While foreign investment is welcome, we must be cautious about over-dependence on FPI flows. Remember 2013 taper tantrum? Our domestic institutions should also step up investments. Good move by RBI though!
A
Ankit S.
Foreign investors coming back shows confidence in Modi govt's economic policies. But why did markets end in red despite this inflow? Global tensions are worrying - hope Iran situation doesn't spoil the party.
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Sunita R.
As a small investor, I'm happy but also confused 😅 Should I invest more now or wait? Experts say one thing, markets do another. RBI did good but global factors are making everything so unpredictable!
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Vikram J.
Positive news but let's not celebrate too soon. This money can fly out faster than it came in if global conditions worsen. We need stronger domestic demand to sustain growth, not just foreign hot money.
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Neha P.
The rate cut was much needed! Our economy was slowing down and this will help businesses get cheaper loans. Hope banks actually pass on the benefits to customers unlike last time 🙏

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