Foreign investors showed confidence, infusing Rs 18,620 crore so far this month, driven by a combination of global tailwinds and improving domestic fundamentals, data from the regulators showed.

This positive momentum follows a net investment of Rs 4,223 crore in April, marking the first inflow in three months, data showed.

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Notably, India’s equity markets witnessed a sharp resurgence in FPI activity in April. The sustained buying spree that began in mid-April continued in the current month, reflecting renewed investor confidence.

Before this, foreign portfolio investors (FPIs) had pulled out Rs 3,973 crore in March, Rs 34,574 crore in February, and a substantial Rs 78,027 crore in January.

According to the data, foreign portfolio investors made a net investment of Rs 18,620 crore in equities this month (till May 16). The total outflow stood at Rs 93,731 crore in 2025 so far.

On the other hand, FPIs withdrew Rs 6,748 crore from the debt general limit and invested Rs 1,193 crore in debt voluntary retention during the period under review.

The developments come at a critical time, as foreign investors continue to adopt a cautious outlook towards Indian bond markets.

Sebi also released the consultation paper proposing to grant certain waivers/relaxations to FPIs investing in the Indian government bonds through the Voluntary Retention Route (VRR) and Fully Accessible Route (FAR) to provide momentum to the drying bond market.