India and Pakistan might be having issues, but overseas investors aren’t withdrawing. Indeed, they’re investing deeper in Indian markets with an optimism that’s difficult to disregard. This month so far, they’ve injected a whopping ₹14,167 crore in Indian shares. And the kicker? This strong buying binge coincides with when geopolitical tension should have kept overseas money at bay.
Trust That Doesn’t Shake
Despite the uncertainty over the India-Pakistan ceasefire scenario, foreign portfolio investors—commonly referred to as FPIs—have remained steady in their confidence in the Indian economy. What is going on in India’s direction is the mix of a robust economic base and a bullish sentiment in overall global markets. Investors appear to believe that India’s long-term growth story is much stronger than the temporary chill with neighboring nations.
A Turnaround in Investment Flows
This May’s money inflow is not a one-off aberration. Foreign Portfolio Investors (FPIs) had already started showing renewed enthusiasm in April by investing ₹4,223 crore in Indian stocks. That was their first positive action in three months. Before that, they had pulled out ₹3,973 crore in March, a substantial ₹34,574 crore in February, and a massive ₹78,027 crore in January. Clearly, May is already shaping up to be a month of recovery and optimism.
Expert Views Draw a Clear Picture
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, feels that this increasing interest from FPIs is not a coincidence. In his opinion, there are a few convincing reasons behind this. Globally, the American and Chinese economies are slowing down and the American dollar is losing strength. Domestically, India’s growth in GDP is still strong, inflation is decreasing, and signs are that interest rates will go down. These aspects render Indian markets as a safe and lucrative gamble.
Yet, even Vijayakumar highlights that bond market investment might not be as much in the limelight. Foreign money will largely remain with equities for the time being.
Winds of a Steady Comeback
Until May 9, overseas investors had already infused ₹14,167 crore into Indian equities. This reduced their net outflow in 2025 to ₹98,184 crore—a significant improvement. April was a turning point, and it seems the trend will be maintained in May.
Himanshu Srivastava from Morningstar Investment notes that renewed investor optimism has been driven by a favorable global sentiment and India’s robust economic foundation.
