FPIs Infuse Over ₹13,000 Crore Into Indian Markets in a Week
India witnessed a substantial surge in foreign capital inflow last week as Foreign Portfolio Investors (FPIs) injected a net ₹13,107.54 crore into the Indian markets during the week ending June 27. The investment spanned both equities and debt instruments, indicating a broad-based return of international investor confidence in India’s economic outlook and policy framework.
Fpi Inflow Trends
This week’s inflow marks one of the strongest in recent months, bolstered by a combination of domestic policy shifts and favorable global conditions. The Reserve Bank of India’s recent 50 basis point rate cut has emerged as a key driver, improving liquidity conditions and making Indian equities and fixed-income instruments more attractive relative to other emerging markets.
Additionally, easing geopolitical tensions—particularly in the Middle East—have restored risk appetite among global investors. As a result, Indian markets are seeing renewed interest, with FPIs targeting a diverse range of sectors, including financial services, infrastructure, and energy.
Market Momentum
The capital inflow had an immediate positive impact on market indices, supporting the upward momentum of both the Sensex and Nifty. Notably, Monday and Friday witnessed concentrated buying, suggesting strategic accumulation by large institutional investors. Monthly data indicates that FPIs have contributed a net ₹8,915 crore to Indian equities in June alone, reinforcing a bullish outlook.
Debt Market Interest
While equity investments dominated the FPI activity, a noteworthy share of the inflow also entered the debt segment. This dual-channel investment suggests that FPIs are adopting a balanced approach to India’s growth story, spreading exposure across both high-return equities and stable fixed-income assets.
