Key Points

Latest data made available by National Securities Depository Limited (NSDL) showed that FPIs had cumulatively bought domestic stocks worth Rs 3,839 crore in July so far.

In April, May, and June, the FPIs had accumulated stocks worth Rs 4,223 crore, Rs 19,860 crore, and Rs 14,590 crore, respectively.

FPIs had somewhat fueled the latest bull run in the stock market, after a sharp slump. The benchmark index Sensex is however quite below its all-time high of 85,978 points.

The benchmark Sensex is now about 3,500 points below its all-time high. At one time, the Sensex had fallen about 13,000 points from its high.

Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible US reciprocal tariffs.

As per the definition, Foreign Portfolio Investment involves an investor buying foreign financial assets.

"The first three months of this year, FPI inflows were negative, and this trend was reversed in the next three months," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, referring to FPI buying trends.

"For 2025, so far, inflows show a negative figure... This is due to the massive selling that happened in January and February. An important trend in FPI investment is that FPIs have been consistent buyers/investors in the primary market even when they have been selling through the exchanges," Vijayakumar added. "Since other markets are cheaper relative to India, FIIs may again sell and move money to cheaper markets as a short-term strategy. In H1 2025, the Indian market underperformed most markets, including the MSCI EM index."

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

- ANI