The tension started after the Pahalgam Terror Attack between India and Pakistan reached the peak and there were fierce drones and missile attacks from both sides. But despite Indo-Pak War Tension, foreign investors continued to trust the Indian stock market. We are not saying this, but the figures of FPI investment (FPI Inflow) are giving testimony themselves. Yes, in the month of May, foreign portfolio investors have invested more than Rs 14,000 crore in Indian equity.
FPI investment for second consecutive month
This is the second consecutive month, while foreign investors have returned and they have invested hugely in the stock market. If you look at the depository data, then in the month of May, the FPI has made an investment of Rs 14,167 crore in 11 days. The most important thing is that foreign investors have made this investment at such a time, while India and Pakistan reached the mouth of war.
The amount was also invested in April
Let us know that the return of foreign investors was seen after the first 3 months of 2025. Earlier in April, FPI had invested Rs 4,223 crore in the stock market and it has also been seen in the beginning of May. However, on May 9 this month, a selling of Rs 3,798 crore was also seen on the last trading day of the week.
Strong withdrawal from January to March
Earlier, talking about the first month of the year, the FPI had sold a large selling of Rs 78,027 crore in January and its impact was also seen as a decline in the stock market. The next month also continued this trend and FPI also withdrawn Rs 34,574 crore in February. After this, the speed of withdrawal in March slowed down and the selling figure of foreign investors was Rs 3,973 crore.
After all, what is the reason behind investment in tension too?
The big question here is that when tension was going on between India and Pakistan, so why were foreign investors investing in the Indian market. So the PTI report quoted analysts as saying that US dollar weakness (US Dollar Fall), US and Chinese economy lethargy (US-China Economy Growth Fall), India’s sharp GDP growth and declining inflation and policy rates have played an important role in making the Indian market attractive.
According to VK Vijaykumar, the main investment strategist of Geojit Investments, a favorable environment at both global and domestic levels may further boost FPI investment, but the investment in the date segment may be weak.
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