Foreign investors made a big return to the Indian equities markets last week, contributing close to Rs 8,500 crore, following a period of prolonged withdrawals earlier this month. Because of India’s robust internal economy and relative protection from interruptions in international commerce, investor mood has strengthened, as evidenced by the inflows.
Foreign portfolio investors (FPIs) invested Rs 8,472 crore in stocks in the week ending April 18. According to depository statistics, this activity involved a withdrawal of Rs 2,352 crore on April 15 and substantial inflows of Rs 10,824 crore over the next two days.
FPI withdrawals in April had totaled Rs 23,103 crore, bringing the total outflow since January 2025 to Rs 1.4 lakh crore, notwithstanding this encouraging trend. Because of the global uncertainty surrounding changes to US tariff policy, the month began with aggressive selling.
Two major causes, according to experts, played a part in this turnaround. First off, the US dollar index’s drop to about 100 and the anticipation of greater depreciation have increased the appeal of emerging countries like India.
Second, India’s economy is predicted to grow at a rate of 6% in FY26, providing a positive outlook despite a difficult global climate, while the US and China are both likely to report muted economic growth this year.
