Daijiworld Media Network - New Delhi
New Delhi, Apr 26: Foreign investors have made a strong return to the Indian equity markets in April, emerging as net buyers after a period of cautious trading. According to analysts, foreign portfolio investors (FPIs) have shown renewed optimism, with positive net investments observed over the past two weeks.
In the last seven trading sessions, FPIs have notably increased their buying activity in Indian equities. The positive shift is attributed to several factors, including a weakening US dollar, favorable tariff agreements, and a renewed sense of confidence in India’s economic future.
“Despite global challenges, including sluggish growth in major economies like the United States and China, India’s economic resilience has kept it in the spotlight,” said Manoj Purohit, Partner and Leader, FS Tax, Tax and Regulatory Services at BDO India. "India’s growth forecast of over 6% for FY26 positions it as the world’s fastest-growing economy, making it an attractive destination for global investors."
For the month of April (till April 24), FPIs purchased equities worth Rs 22,716.43 cr, while they sold equities worth Rs 17,196.33 cr, resulting in a net investment of Rs 5,520.1 cr.
The latter half of March 2025 saw a significant uptick in FPI buying, particularly in the banking, financial services, and insurance (BFSI) sectors. This was a notable turnaround from earlier selling in the sector, with a net FPI inflow of $1,675 million in March. Additionally, sectors such as telecommunications and metals and mining also saw positive net inflows of $360 million and $219 million, respectively, as per a recent note by Bajaj Broking.
India’s strong economic outlook, ongoing policy reforms, and focus on infrastructure, digital growth, and ease of doing business are further boosting investor confidence. The Reserve Bank of India’s decision to maintain the existing corporate bond and government securities limits for FPIs underscores the government's commitment to maintaining an open gateway for foreign investment.
With a resilient market and an increasingly favorable business environment, India remains a prime destination for global capital.