FIIs Invest ₹18,082 Cr in May: Indian Equities
Foreign Institutional Investors (FIIs) injected ₹18,082 crore into Indian equities in May, marking a second consecutive month of net buying—a important turnaround. This surge follows significant selling earlier in 2025, reflecting a shift driven by evolving global and domestic macroeconomic factors. The renewed interest from FIIs suggests rising confidence in India’s economic fundamentals, with analysts highlighting easing global inflation and stable domestic indicators as key drivers. this marks a notable turnaround after heavy outflows earlier in the year. The return of foreign institutional investors could further bolster market confidence. News Directory 3 has the details. Discover what’s next for the Indian equity market and how these inflows will impact the markets.
FIIs Boost Indian Equities with Second Month of Net Inflows
Updated May 31, 2025
Foreign Institutional Investors (FIIs) have become net buyers in Indian equities for the second consecutive month, signaling a meaningful shift in market sentiment. Data from the National Securities Depository Limited (NSDL) reveals net inflows of ₹18,082 crore through exchanges up to May 30.
This follows a net purchase of ₹4,243 crore in April. The renewed FII inflows mark a notable turnaround after aggressive outflows earlier in 2025, representing one of the most significant shifts in India’s capital markets this quarter.
During the first three months of 2025, FIIs were consistent sellers.January saw them sell equities worth ₹78,027 crore, coinciding with the dollar index peaking. Concerns over global interest rate movements and a stronger dollar drove the selling. However,as global macroeconomic indicators eased,the selling intensity declined.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that slowing growth in the U.S. and China, declining inflation, and steady domestic macroeconomic indicators are driving FII inflows into India.
“Global macros like declining dollar, slowing US and Chinese economies and domestic macros like high GDP growth and declining inflation and interest rates are the factors driving FII inflows into India,” Vijayakumar said.
The trend of positive FII flows suggests renewed confidence in the Indian growth story, supported by strong fundamentals and improving macroeconomic stability. The return of foreign institutional investors as net buyers could further bolster market confidence.
What’s next
Market analysts will closely watch upcoming economic data releases and global cues to gauge the sustainability of this FII inflow trend and its potential impact on Indian equity markets.