Key Points

The Indian stock markets saw positive foreign portfolio investment (FPI) inflows during the week, even though trading happened only on three days -- Tuesday, Wednesday, and Thursday -- due to holidays on Monday and Friday.

The fresh inflows signal a comeback of foreign investors who were selling for some months in the equity segment, helping markets close the week on a positive note.

One of the main reasons behind this inflow is the weakening of the US dollar. As the dollar declines and currencies like the Indian rupee strengthen, it becomes more attractive and easier for FPIs to shift their investments from the US to countries like India.

Aashish P Sommaiyaa, Executive Director & CEO, WhiteOak Capital told ANI "The positive fallout of the USA tariff scenario and impending global slowdown is two fold - one it comes with declining dollar and relative strengthening of emerging market currencies like rupee - which makes it easier for FPIs to allocate money out of USA into markets like India".

He added, "Further, it gives RBI leeway to run easier monetary and credit conditions. Also given the global economic scenario with China and USA both heading for slowdown in any case domestic oriented markets like India will attract more flows".

However, despite this week's (April 15-April 17) strong inflow, overall FPI activity in April remains in the negative zone. So far in April, FPIs have pulled out a net Rs 23,103 crore from Indian equities. The broader picture for 2025 also shows a negative trend, with total net outflows of Rs 1,39,677 crore from the equity market this year.

While the recent inflows offer some relief, market watchers will closely monitor if this trend continues in the coming weeks or if global uncertainties once again impact investor sentiment.

- ANI