Foreign portfolio investors infused ₹1,209 crore into Indian equities during the week ending June 20, marking a positive trend despite overall monthly outflows, according to data released by the National Securities Depository Limited (NSDL).

The weekly inflows were primarily driven by significant buying activity on Wednesday and Friday, with market participants attributing the trend to foreign participation in block deals and notable inflows during Friday’s FTSE rebalancing exercise. However, net outflows for June stood at ₹4,192 crore as of June 20, though this represents an improvement from the previous week ending June 13, when outflows were higher at ₹5,402 crore.

“Foreign Institutional Investors were marginal net buyers of $139 million into the Indian equity markets during the week of June 16–20, 2025, signaling a cautious shift in sentiment after a strong buying streak in May,” said Himanshu Srivastava, Associate Director - Manager Research, Morningstar Investment Research India. He noted that “a mix of global and domestic factors weighed on investors risk appetite.”

The weekly data showed volatile daily patterns, with foreign investors experiencing net outflows on June 16 (₹373.65 crore) and June 17 (₹2,647.46 crore), before recording significant inflows of ₹2,788.27 crore on June 18. June 19 saw modest outflows of ₹597.59 crore, while June 20 concluded the week with substantial inflows of ₹2,040 crore.

Global headwinds continued to influence investor sentiment, with rising US Treasury yields, a stronger dollar, and renewed geopolitical tensions, particularly in the Middle East, creating a risk-off environment. “The primary drivers were rising US Treasury yields, a firmer dollar, and renewed geopolitical concerns, particularly escalating tensions in the Middle East,” Srivastava explained.

Vipul Bhowar, Senior Director - Listed Investments, Waterfield Advisors, observed that “the trend of Foreign Portfolio Investment experienced a reversal in April and demonstrated considerable strengthening in May, characterised by positive inflows.” He added that “geopolitical tensions, including the conflict between Israel and Iran, alongside global uncertainties, fostered a cautiously optimistic pattern in June.”

The improvement in weekly flows comes after May recorded net FPI inflows of ₹19,860 crore, making it the best-performing month this year for foreign investment. Earlier months showed significant outflows, with FPIs selling equities worth ₹78,027 crore in January, ₹34,574 crore in February, and ₹3,973 crore in March.

“Looking ahead, FII activity is likely to remain data-dependent and sensitive to global cues,” Srivastava noted. “Sustained risk appetite will hinge on the trajectory of US interest rates, global inflation trends, and clarity on geopolitical developments.”

The upcoming week is expected to bring key economic indicators from both the United States and India. Bajaj Broking Research highlighted that investors will watch for “the S&P Global Manufacturing PMI, Initial and Continuing Jobless Claims, and the Core PCE Price Index from the US, while India will release Manufacturing PMI and Industrial Production data.”

Domestic factors including macroeconomic indicators, institutional buying support, and sector-specific triggers such as monsoon progress and infrastructure developments are expected to influence short-term FPI behaviour and stock-specific movements in the coming weeks.

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Published on June 21, 2025