Foreign investors put ₹4,223 crore into India’s stock market in April, becoming net buyers for the first time in three months. This shift came after three months of continuous selling — they had withdrawn ₹3,973 crore in March, ₹34,574 crore in February, and ₹78,027 crore in January.
Experts say this positive change was driven by a mix of strong local economic conditions and supportive global trends. In total, foreign investors (also known as FPIs) have pulled out ₹1.12 lakh crore so far in 2025, but April’s inflow has slightly reduced this overall outflow.
According to Himanshu Srivastava from Morningstar Investment, the renewed interest in Indian stocks was supported by hopes of a US-India trade agreement, a weaker US dollar, and a stronger Indian rupee — all of which made Indian markets more attractive. Additionally, strong earnings by major Indian companies also boosted investor confidence.
Read More: A Big Week for the Stock Market: What the Fed, Global Tensions, and Earnings Mean for the Market
V K Vijayakumar from Geojit Investments explained that two major global factors influenced this turnaround. First, former US President Donald Trump’s decision to pause new tariffs for 90 days brought stability to global markets. Second, the US dollar’s sharp fall — from a dollar index level of 111 in January to 99 recently — made emerging markets like India more appealing to foreign investors.
However, while FPIs put money into stocks, they pulled out from debt instruments. They withdrew ₹13,314 crore from general debt and ₹5,649 crore from the voluntary retention route during April.
Looking ahead, experts believe that FPI investments may remain stable but could be limited due to modest earnings growth expectations of around 5% in the financial year 2025.
