Foreign Portfolio Investors (FPIs) have made a notable return to the Indian equity market, signaling a possible shift in sentiment after a prolonged period of selling. On Tuesday, they purchased stocks amounting to ₹6,065.78 crore, marking their first net buying activity in nine sessions. This follows a significant buy on March 27, when they acquired equities worth ₹11,111.25 crore, which remains the highest single-day purchase in 2025.
Domestic Investors Shift Gears
In contrast, domestic institutional investors (DIIs) reversed their buying trend, becoming net sellers by offloading equities valued at ₹3,136.02 crore. This marks their first selling action since April 4, when they had also sold equities worth ₹1,720.32 crore. The latest data from the National Stock Exchange highlights this shift in investor behavior.
- FPI Trends in April:
- Total offloaded equities: ₹33,927 crore
- Previous month (March): Net selling of ₹3,973 crore
- February’s net selling: ₹34,574 crore
- January had seen a staggering net selling figure of ₹78,027 crore
So far in 2025, FPIs have net sold equities totaling ₹1.50 lakh crore, according to the National Securities Depository Limited (NSDL).
Market Reactions
In response to these movements, the benchmark indices displayed resilience. The Nifty 50 closed up by 2.19%, concluding at 23,328, while the Sensex saw a 2.10% increase, finishing at 76,734. Both indices experienced significant intraday highs, with Nifty reaching a peak of 2.36% and Sensex hitting 2.33%.
- Key Market Highlights:
- Nifty 50: Gained 500 points
- Sensex: Increased by 1,577 points
This upward trend marks the second consecutive session of gains for these benchmark indices, underscoring a renewed optimism among investors.
Conclusion
The recent activities of FPIs and DIIs illustrate a dynamic shift within India’s equity markets. With FPIs returning as buyers and DIIs retracting, investors are keenly observing how these trends will influence future market performance. The ongoing volatility reflects broader economic sentiments and investor confidence in the Indian economy’s resilience amidst global uncertainties.
