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Key Points

Foreign portfolio investors have been a significant driving force behind the recent gains in the Indian stock market. In May, FPIs purchased Rs 19,860 crore worth of stocks, building on their April buying spree. The Indian indices have shown resilience compared to global markets, aided by stable inflation figures at home. Despite not reaching its all-time high, the Sensex's recent performance signals a recovery from its 13,000-point slump.

Key Points: FPIs Drive Second Month of Gains in Indian Stock Markets

  • FPIs net buyers for two months in Indian market
  • Rs 19,860 crore worth stocks bought in May
  • Sensex 4,500 points below record high
  • Indian markets beat global volatility
1 min read

FPIs remain net buyers in Indian stock market for second month

FPIs boost Indian stocks in May with a net buying of Rs 19,860 crore.

"FPI buying has supported the indices of late. - National Securities Depository Limited"

New Delhi, June 1

Foreign portfolio investors (FPIs) have turned net buyers in Indian stock markets for the second straight month in May.

In January, February, and March, they have been net sellers all through.

Data made available by National Securities Depository Limited showed that FPIs had bought stocks worth Rs 19,860 crore in May. In April, the FPIs had accumulated stocks worth Rs 4,223 crore.

FPIs had fuelled the latest bull run in the stock market, after a sharp slump. As per definition, Foreign Portfolio Investment involves an investor buying foreign financial assets.

The benchmark Sensex is now about 4,500 points below its all-time high of 85,978 points. At one time, the Sensex had fallen about 13,000 points from its high. The FPI buying has supported the indices of late.

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

A comfortable inflation number in India also somewhat supported the domestic equity indices.

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

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Reader Comments

Here are 6 authentic Indian perspective comments for the FPI article:
R
Rajesh K.
This is great news for our markets! FPIs returning shows global confidence in India's growth story. Just hope this isn't short-term money that will flee at the first sign of trouble. Our regulators should keep monitoring the flows closely.
P
Priya M.
While FPI inflows are positive, we shouldn't become over-dependent on foreign money. Domestic institutions and retail investors need to play bigger role in market stability. #MakeInIndia should apply to investments too!
A
Amit S.
The volatility in FPI flows is concerning. One month they sell, next month they buy. This creates unnecessary turbulence for small investors like me. SEBI should consider some stabilizing mechanisms.
S
Sunita R.
Our markets performing better than global peers is no surprise! With strong GDP growth, political stability and digital transformation, India is the bright spot in world economy. FPIs are just realizing what we knew all along 😊
V
Vikram J.
The numbers look good but let's not celebrate yet. Remember 2022 when we had just 3% growth? Markets can be unpredictable. As an investor, I'm cautiously optimistic but keeping some cash aside for corrections.
N
Neha T.
While FPIs are important, I wish media would focus more on how ordinary Indians are participating in markets through SIPs and direct equity. That's the real transformation happening in our country!

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