Foreign investors continued to show a strong appetite for Indian stocks in May month. Last week, foreign institutional investors (FIIs) bought domestic equities worth Rs 15,925.41 crore, while foreign portfolio investors (FPIs) pumped in Rs 18,620 crore in less than 3 weeks. With a ceasefire agreement between India and Pakistan coupled with a pause in the trade war between the US and China, the investment situation is said to have improved.
FIIs Investment In Indian Stocks:
FIIs made their strongest single-day buying last week on May 16, with an inflow of Rs 8,831.05 crore in Indian stocks. The second highest buying was on May 15 with an inflow of Rs 5,392.94 crore. They were also buyers on May 14 and May 12 to the tune of Rs 931.80 crore and Rs 1,246.48 crore respectively. However, on May 13, FIIs sold Rs 476.86 crore worth of equities.
Taking into consideration the above, FIIs made Rs 15,925.41 crore in Indian stocks from May 12-16 trading week.
Overall, in May month, FII inflow is to the tune of Rs 23,782.64 crore in Indian equities. This is the strongest monthly buying of 2025 as well.
"With the global trade scenario improving after the pause in the trade war between US and China and the end of the India-Pak conflict, the investment scenario has improved. The growth prospects in US, China, Japan and the EU continues to be challenging while India is expected to clock a growth rate of above 6% in FY 26," Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments wrote in a note.
Highlighting in detail, the analyst said, FIIs who were sellers in the first three months of 2025 having sold equity for Rs 116574 crores during this period turned buyers in April with buy figure of Rs 4243 crores. This change in FII strategy from selling to buying accelerated in May with big buying of 23778 crores through 16th May.
Importantly, with inflation in India very much under control and the MPC expected to cut rates twice or thrice more in this rate cutting cycle, the macro construct in India looks good. Adding he said, "Going forward, FIIs are likely to continue their buying in India. Therefore, large caps will be resilient."
FPIs Investment In Indian Stocks:
Data from NSDL showed that FPIs have bought about Rs 18,620 crore worth Indian equities from May 1st to May 16th. FPIs were buyers in April 2025 as well, with an inflow of Rs 4,223 crore.
However, FPIs were net sellers in March, February and January 2025, with an outflow of Rs 3,973 crore, Rs 34,574 crore, and Rs 78,027 crore in Indian equities.
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