FPI inflow is being invested positively with £ 8500 crore this week despite shorter trading week: NSDL data

Mumbai (Maharashtra) [India]April 19 (Ani): Despite a shorter trading week due to vacations, foreign investors have thrown around £ 8,500 into Indian shares, according to the National Securities Deposit Limited (NSDL) data. The Indian stock markets had positive inflow of foreign portfolio investments (FPI) during the week, even if the trading only took place on three days – Tuesday, Wednesday and Thursday – due to vacations on Monday and Friday. The fresh inflow indicates a return from foreign investors who sold a few months in the stock segment, which helps markets close the week on a positive note. One of the main reasons behind this inflow is the weakening of the US dollar. As the dollar falls and currencies such as the Indian rupee strengthen, it becomes more attractive and easier for FPIs to move their US investments to countries such as India. Aashish P Sommaiyaa, executive director and CEO, Whiteoak Capital, told Ani “the positive outage of the US tariff scenario and an approaching global slowdown is twice – one with a falling dollar and a relative strengthening of emerging market currencies such as rupee – which makes it easier for FPI like India ”. He added, “Furthermore, it gives RBI space to run more easily and credit conditions. Also, the global economic scenario with China and the US, both on the way to slowdown in any case, will attract domestic oriented markets as India will attract more flow”. However, despite this week’s strong inflow (April 15, 17), the general FPI activity in April remains in the negative zone. So far in April, FPIs have pulled out a net £ 23.103 crore of Indian shares. The broader picture for 2025 also shows a negative trend, with the total net outflow of £ 1,39,677 crore from the stock market. Although the recent influx offers some relief, market viewers will carefully monitor if this trend continues in the coming weeks, or if global uncertainties have an impact on investor sentiment. (Ani) first published: 19 Apr 2025, 10:26 am Ist