FPIs: FPIs boost Indian equities amid tariff optimism in April

ET Intelligence Group: FPIs were net buyers of Indian equities in April, driven by a shift in their stance in the middle of the month. It was in response to the rising optimism that the country would benefit more from the US tariffs among emerging markets.

After selling equities worth ₹33,927 crore ($3,953 million) in the first half of April, FPIs ended the month with net purchases worth ₹4,223 crore ($510 million), according to the data from NSDL. That means they bought equities worth ₹38,150 crore ($4,463 million) in the second half of the month alone. Despite this sudden rush, FPIs remained net sellers of Indian equities worth ₹1,12,350 crore ($12,911 million) in the first four months of 2025.

Historically, May is considered as a weak period for foreign flows. In the past 17 years since 2008, when the financial crisis hit the Western economies, FPIs were net sellers in May on nine occasions, or 52% of the time. FPIs’ stance this time around in May will be driven by developments on the Kashmir front, any changes in the tariff stance by the US, movement in the US treasury yields and other geopolitical developments.

In April, FPIs were net buyers on 10 out of 18 trading days. They purchased net equities worth ₹980 crore ($115 million) in the primary market and ₹3,243 crore ($395 million) in the secondary market. In 2025 so far, they have continued to show higher interest in the primary market, which covers investments in initial public offers (IPOs) and qualified institutional placements (QIP). During the period, they invested ₹14,087 crore ($1,625 million) in the primary segment while selling ₹1,26,437 crore ($14,536 million) worth of equities in the secondary market. In 2024, they had invested ₹1,21,637 crore ($14,499 million) in the primary market and sold ₹1,21,210 crore ($14,375 million) worth of equites in the secondary market. The equity investments by domestic mutual funds remained under ₹20,000 crore for the second consecutive month in April.