Foreign Portfolio Investors News

India and Pakistan face escalating tensions with drone strikes reported along the border on Thursday. While Indian markets remain relatively stable, the rupee suffers its worst decline in over two years, prompting concerns about foreign investment amid the ongoing conflict.

Sebi has postponed the common contract note rollout for foreign portfolio investors to 1 July, delaying it by two months. The CCN aims to consolidate trade details into a single document, enhancing transparency and efficiency for over 11,000 registered foreign portfolio investors in India.

Foreign portfolio investors have returned as net buyers in India's equity market, investing ₹32,465 crore in recent weeks. Factors like improved domestic economic conditions and ongoing trade talks with the U.S. are encouraging this trend, positioning India favorably amid global uncertainties.

Foreign portfolio investors became net buyers, investing ₹6,065 crore in the Indian stock market, ending a nine-day selling streak. This shift in sentiment followed U.S. President Trump's easing of tariffs, raising hopes for a broader trade truce and reducing market uncertainty.

In February, FPIs pulled out ₹34,574 crore, while January saw an even higher outflow of ₹78,027 crore. Between October 2024 and February 2025, FPIs withdrew more than ₹3 lakh crore from the Indian stock market, largely driven by concerns over lofty valuations and weak corporate earnings.

Indian retail investors are losing enthusiasm in the stock market due to increased volatility, becoming net sellers recently while still contributing through mutual funds. Kotak Institutional Equities observes this shift as a response to muted returns and evolving market expectations.

Foreign portfolio investors showed unpredictability in Indian equities in 2025, with significant outflows in early months followed by buying in March. Despite a 6% recovery in the Nifty, concerns over global trade tensions and tariff policies keep market sentiment fragile.

FPIs have shifted to net buying in the Indian stock market after a significant outflow. With ₹32,576 crore invested recently, the Nifty 50 rose 6.21% in March, outpacing global peers amidst easing inflation and easing valuations concerns.

So far this month, FPIs have pulled out another ₹24,753 crore, bringing total equity selling in CY 2025 to ₹1,37,354 crore from Indian stocks through exchanges. Looking ahead, analysts believe that the drop in the US Dollar index will limit inflows back to the U.S. markets.

Domestic brokerage firm Axis Securities stated in its report that March has historically been a strong month for market recoveries, with an average gain of 1.7% since 2009 (excluding the 2023 outlier plunge).