Foreign Investors Pump ₹17,425 Crore into Indian Stock Markets in a Week. Global stability, a weakening dollar, and India's robust growth outlook have attracted investors.
Share Market: Confidence among foreign investors in the Indian stock market is soaring. In the week ending April 18th, foreign portfolio investors (FPIs) invested a substantial ₹17,425 crore in Indian equities. This is a significant increase compared to the ₹8,500 crore invested in the week ending April 18th. This investment reflects the stability and growth potential of the Indian markets.
Why the Surge in Foreign Investor Confidence?
The primary driver behind the increased FPI investment is India's b economic fundamentals and positive global indicators. Anticipation of adjustments in US interest rates and the dollar's relative stability have increased risk appetite in emerging markets like India.
Furthermore, easing global trade tensions and an improved growth outlook for the Indian market have bolstered investor confidence. Decreasing inflation and the forecast of an above-average monsoon in 2025 are also contributing factors.
An Attractive Investment Climate for the Indian Market
According to Himanshu Srivastava, Associate Director at Morningstar Investments, positive economic indicators in India, such as declining inflation and a b growth outlook, are making it an attractive investment destination for foreign investors. This is solidifying the Indian market's position as a compelling investment option.
April's Withdrawals and Investment Status
While FPI investment has increased, there have also been net withdrawals of ₹5,678 crore in April so far. Consequently, total net withdrawals in 2025 have reached ₹1.22 lakh crore.
Why the Increased Interest in the Indian Market?
According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, the weakening US dollar and the potential slowdown in US economic growth have shifted investor interest towards Indian markets. The decline in the dollar index has made investment in Indian markets more attractive, as India's economy remains resilient with growth exceeding 6%.
