Market surge takes FPI assets above $800 bn after 4 months

Indian equities held by overseas investors crossed the $800 billion mark for the first time in four months, driven by renewed inflows and a rise in the value of their holdings as global trade worries ease.

- Ram Sahgal

Foreign portfolio investors' (FPI) assets rose to $811 billion as of 30 April, up from $773 billion on 15 April, according to data from the National Securities Depository Ltd (NSDL).

The surge came as FPIs turned net buyers of Indian equities for the first time in six-and-a-half months. The rally was supported by a weaker dollar and optimism around the Indian economy's potential to outperform amid signs of the US nearing trade deals with India and other key partners.

At its lowest point, FPIs' assets under management had dropped to a 15-month low of $714 billion on 28 February—its weakest level since November 2023—due to persistent outflows stoked by US President Donald Trump's tariff proposals. However, the sentiment reversed by mid-April after the US paused its plan to hike tariffs on trading partners by 9 April.

With FPIs turning buyers, the benchmark Nifty rebounded 12% from a 10-month low of 21,743.65 on 7 April to 24,334.20 by month-end. Domestic institutional investors (DIIs) continued to provide steady support, although at more modest levels.

DII cash market buying stood at ₹2,593 crore in the second half of April, compared with FPIs' net investment of ₹37,546 crore.