Surging FPI Inflows Signal Strong Market Revival in India - News

Foreign Portfolio Investors (FPIs) continued to invest heavily in Indian equities, with a recent net inflow of INR 8,831.1 crore—the largest single-day investment since March 27, 2025, as per provisional data released by the National Stock Exchange (NSE). This surging inflow indicates renewed confidence of foreign investors in Indian markets, especially amid global uncertainty. 

So far in May 2025, FPIs had invested INR 5,746.5 crore, pushing total inflows to INR 18,620 crore. This is a sharp rise compared to April 2025, which saw net FPI investments of INR 4,223 crore, according to National Securities Depository Ltd (NSDL) data. Domestic Institutional Investors (DIIs) have also returned as net buyers, investing INR 5,187.1 crore after a brief pause.

Despite the robust inflows, benchmark indices ended lower due to profit booking in large-cap stocks. The Nifty closed at 25,019.80, down 42.30 points, while the Sensex settled at 82,330.59, down 200.15 points. During the intraday session, the Nifty had slipped as much as 0.44 percent to 24,953.05, and the Sensex had dropped 0.47 percent to 82,146.95.

For the week ending May 16, 2025, however, both benchmark indices recorded strong gains. The Nifty rose 4.21 percent, and the Sensex climbed by 3.62 percent, marking their best weekly rise since October 2024.

Nandish Shah, Senior Analyst, HDFC Securities, observed that the Nifty remains above its short-term moving averages, indicating a continued bullish trend, with resistance expected near 25,207 and support around 24,800.

FPI activity in May marks a clear rebound after three months of net outflows earlier in 2025.