Sun May 11 18:01:23 UTC 2025: ## Indian Equity Market Sees Surge in Foreign Investment Despite Geopolitical Tensions
**New Delhi, May 12, 2025** – Despite ongoing military tensions between India and Pakistan, foreign portfolio investors (FPIs) have poured ₹14,167 crore (approximately $1.7 billion USD) into India’s equity market this month, marking a significant reversal from recent outflows. This inflow follows a net investment of ₹4,223 crore in April, the first inflow after three consecutive months of withdrawals.
The surge is attributed to a confluence of factors, including positive global cues such as a weakening US dollar and slowing economies in the US and China. Robust domestic fundamentals, particularly strong quarterly earnings from major Indian corporations, also played a crucial role in boosting investor confidence. Analysts point to a potential US-India trade agreement as another contributing factor.
“The hallmark of FPI investment in recent days has been sustained buying,” noted V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments. He highlighted a 16-day consecutive buying spree totaling ₹48,533 crore before a single day of selling, coinciding with an escalation of the India-Pakistan conflict. While equity investments remain strong, debt inflows are expected to remain low.
Himanshu Srivastava, Associate Director at Morningstar Investment, echoed these sentiments, emphasizing the combination of favorable global conditions and strong domestic performance as the driving force behind the renewed FPI interest.
Despite the positive trend, the year-to-date outflow remains at ₹98,184 crore. However, the recent surge indicates a growing confidence in the Indian economy and its equity market, even amidst regional geopolitical uncertainty.
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