FPIs Are Back: ₹32,000 Cr Pours Into Indian Stocks in Just Six Days

resr 5paisa Research Team

Last Updated: 28th March 2025 - 06:01 pm

2 min read

In an optimistic turnaround, FPIs or foreign portfolio investors have pumped in funds of just over ₹32,000 crore into the Indian stock market over just six trading sessions.

That’s a major shift from the months of steady outflows and shows growing confidence in India’s economic future.

FPIs Stage a Massive Comeback

For most of 2025 so far, FPIs were pulling money out, fast. In just the first half of March, they yanked out ₹30,000 crore. That came on top of huge outflows of ₹34,574 crore in February and ₹78,027 crore in January. Altogether, that’s ₹1.42 lakh crore (about USD 16.5 billion) gone in just a few months. Safe to say, the mood was grim.

But the momentum is shifting. Over just six market sessions, foreign investors flipped the script and poured in ₹32,000 crore.

The table below shows the last growth for the past five trading sessions.

Date

Gross Purchase

Gross Sales

Net Purchase/Sales

2025-03-27

31783.8

20672.5

11111.2

2025-03-26

14316.3

12075.8

2240.6

2025-03-25

19066.3

13694.7

5371.6

2025-03-24

15777.7

12722

3055.8

2025-03-21

49892.6

42422.3

7470.4

So, what’s Behind the Comeback? So, why are FPIs suddenly bullish again? 

A few things are working in India’s favor:

  • Attractive Valuations: After recent corrections, stocks are looking a lot more reasonably priced. In fact, the Sensex is back at levels we haven’t seen since November 2020. For many investors, that’s a green light.
  • Strong Economic Signals: Inflation is under control, and the trade deficit is narrowing. Those are signs of a stable and healthy economy, two things investors love to see.
  • Regulatory Boosts: The RBI is proposing to double the cap on how much a single foreign investor can own in listed companies, from 5% to 10%. That kind of move could bring in even more foreign money and make the market deeper and more liquid.
  • Financial Sector on Fire: Banking sector stocks and financial sector stocks are leading the charge. So far in FY2025, financials are up nearly 20%, and banks have jumped 9%. With strong demand from the services and retail sectors, analysts expect 12–13% credit growth for banks.

Can This Rally Keep Going?

While this sudden turnaround is promising, experts are staying cautiously optimistic. A few things could still throw a wrench in the works: global uncertainty, policy changes, or even just investors cashing in on recent gains.

The ₹32,000 crore comeback by FPIs is more than just a comeback, it’s a strong vote of confidence in India’s economy and markets. Attractive prices, strong fundamentals, and smart reforms have all played a part. Now, all eyes are on whether this rally has legs. Either way, the mood has clearly shifted to the optimistic side and that’s good news for investors.
 

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