Indian markets get boost as FPIs invest Rs 18,620 crore in May amid uncertainty

NEW DELHI: Foreign Portfolio Investors (FPIs) made strong investments in the Indian equity markets this week, bringing in Rs 4,452.3 crore between May 13 and May 16, according to data from the National Securities Depository Limited (NSDL), reported by news agency ANI.FPIs recorded their highest inflow of the week on Friday, investing a net Rs 5,746 crore into Indian equities. However, the overall trend remained volatile, with Tuesday seeing a significant net outflow of Rs 2,388 crore — likely reflecting investor caution or profit booking amid market uncertainty.The total FPI investment into Indian equities in the month of May has now reached Rs 18,620 crore.Despite the strong inflow in May, FPI outflow stands at Rs 93,731 crore. The primary reason being the heavy selling seen in the first three months of the year when global uncertainties and rising US bond yields negatively impacted investor sentiment.Net FPI investment in Indian equities stood at Rs 4,223 crore in April, marking a shift in foreign investment trends.According to NSDL data, FPIs sold stocks worth Rs 3,973 crore from Indian equities in March. The selling was even more intense in the first two months of the year, with net outflows of Rs78,027 crore and Rs 34,574 crore in January and February.Last week, the benchmark indices saw a strong rally, with the Nifty rising 4.2% and the Sensex gaining 2,875 points.All major sectoral indices traded in positive territory, with Defense, Realty, and Capital Market sectors leading the way. Defense gained 17%, Capital Market 11.50%, and Realty 10.85%.