FPI Exodus Eases as ₹31,000 Crore Flows in March’s Final Week: Market Outlook Uncertain

Foreign portfolio investors (FPIs) showed signs of returning to Indian equities, as sharp outflows, witnessed early in the year, were followed by renewed buying interest in March. Despite heavy selling in January and February, FPIs turned buyers towards the end of March, helping the benchmark Nifty recover by nearly 6 per cent in this month. However, concerns over US President Donald Trump’s tariff policies and global economic uncertainty continue to influence FPI sentiment, keeping the Indian markets on edge.

Foreign portfolio investors (FPIs) have pulled out a massive ₹1.16 lakh crore from Indian equities so far in 2025, starting the year on a negative note. After recording net inflows in December 2024, FPIs reversed course, triggering heavy outflows in the new year. The exodus coincided with a sharp correction in Indian markets, particularly in broader indices, amid global economic uncertainties and elevated domestic valuations.

While Indian markets witnessed a recovery in March, FPIs remained net sellers, offloading equities worth ₹3,973 crore during the month. However, this was a significant drop from the heavy outflows seen in the previous months. Notably, foreign investors pumped nearly ₹31,000 crore into Indian equities during the last six trading sessions of March. This infusion was driven by attractive valuations, a stronger rupee, and improved macroeconomic indicators.

The return of FPIs as buyers fueled a smart recovery in the Nifty, which surged around 6 per cent, signaling renewed confidence in the market.