No Geopolitical Fear! FPIs Invest Rs 14,167 Cr In Indian Stocks, FIIs Infuse Rs 7,857.23 Cr; What's Ahead?

Despite the geopolitical tensions between India and Pakistan, foreign investors are unfazed as they continue to pump-in more money into Indian stock market. FPIs have invested more than Rs 14,000 Crore in May so far, while foreign institutional investors (FIIs) infused over Rs 7,857 crore. This is despite Sensex and Nifty falling by nearly 2% during the trading session of May 5-9 week.

Notably, FPI flows to date in May'25 were positive for all key emerging markets (except Indonesia).

Data from Kotak Securities revealed that India, Brazil, Malaysia, Philippines, S.Korea, Taiwan, Thailand, and Vietnam witnessed outflows of US$1,371, US$360 mn, US$148 mn, US$35 mn, US$361 mn, US$3,343 mn, US$32 mn, and US$52 mn, respectively.

Here's What To Expect Ahead?

Global equities extended the relief rally on expectations of a steady ramp-down of US tariffs. Meanwhile, Indian markets were large underperformers over the last week, as markets priced in an increase in geopolitical risks. Q4FY25 earnings season remains mixed till now, with big banks driving the bulk of the earnings outperformance versus our estimates. On the economy front, India and the UK signed a free trade agreement, which ensures comprehensive market access for goods, covering all of India's export interests. FPI flows are expected to remain volatile, said Shrikant Chouhan, Head Equity Research, Kotak Securities.