Foreign Investors Pour ₹17,425 Crore into Indian Equities Amid Global Shifts

According to depository data, Foreign Portfolio Investors (FPIs) have made a strong comeback in India’s equity markets, infusing ₹17,425 crore in the week of April 21–25, 2025. This follows a net investment of ₹8,500 crore in the prior week, driven by a weakening U.S. dollar, a pause in U.S. tariffs, and India’s robust economic outlook. The buying spree has reduced April’s total FPI outflows to ₹5,678 crore, down from ₹33,927 crore earlier in the month, trimming yearly outflows to ₹1.22 lakh crore.

With the dollar index dropping from 111 in January to 99, the decline of the U.S. dollar has shifted investor focus from U.S. equities to emerging markets like India. A 90-day pause on most U.S. reciprocal tariffs, announced by President Donald Trump, has eased global trade tensions, boosting confidence. Despite ongoing US-China trade disputes, with 125% tariffs still in place on China, analysts see India as a safe bet. A weakening U.S. dollar and tariff revisits have sparked optimism around India’s economic trajectory, said Manoj Purohit, Partner at BDO India.

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India’s economic resilience, GDP growth above 6%, and recovering corporate earnings contrast with a projected U.S. slowdown. Goldman Sachs forecasts U.S. growth at just 0.5% in 2025, with a 45% recession risk. In India, moderating inflation and an above-normal monsoon forecast for 2025 further enhance appeal. India’s growth above 6%, paired with earnings recovery, makes it a top destination, said an expert analyst at a well-known Investment firm.

Despite geopolitical Tension
Despite geopolitical tensions, including India-Pakistan strains after the Pahalgam terror attacks, FPIs remain undeterred. The Nifty 50 and Sensex rose over 3% during the week, reflecting market strength. Analysts expect FPI inflows to continue, driven by lower interest rates, increasing retail credit, and government spending. However, investors will monitor Q4 earnings, monsoon progress, and tariff talks for market direction.

Conclusion
The recent FPI influx into Indian equities signals renewed global confidence in India’s economy. With favorable global and domestic factors, India is poised to attract more investments, provided trade and geopolitical stability persist.