Share Market News / Are good days coming for the stock market? A big update on foreign investors

Share Market News: If you also invest in the stock market, then this news can prove to be important for you. A big update has come out regarding foreign portfolio investors (FPIs), due to which it is expected that the good days of the Indian stock market may return in the coming days. Recently, there has been a tremendous recovery in the stock market, as well as the outflow of FPIs has also come down, which is a positive sign for the market.

Decrease in FPI selling

The Indian stock market was witnessing continuous selling by FPIs for the past few months, which kept the market under pressure. However, amid easing economic concerns globally and prospects of peace in the Russia-Ukraine conflict, the pace of FPI selling seems to be slowing down. According to the latest data, FPIs have sold shares worth a net Rs 1,794 crore ($194 million) last week.

Continuous selling continues for 15 weeks

Although the attitude of FPIs has become slightly positive, this is the 15th consecutive week when they have withdrawn from the Indian stock market. Himanshu Srivastava, Associate Director-Manager Research, Morningstar Investment, says that investors are still adopting a cautious stance. They are waiting for some clarity on the interest rate policy of the US Federal Reserve, geopolitical events and economic conditions.

According to depository data, FPIs sold shares worth Rs 1,794 crore in the week ended March 21, while their withdrawal in the previous short-term week was $ 60.4 million. In the recent week, FPIs also made net purchases twice, giving some relief to the market.

FPI interest in bond market increased

Even though FPIs have withdrawn from the stock market, they have continued to invest in the Indian bond market. According to VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, the reduction in FPI selling has increased confidence in the market, leading to a rise in the stock market in the week ended March 21. However, even during March, FPIs sold Rs 31,719 crore, which was Rs 34,574 crore in February and Rs 78,027 crore in January.

According to depository data, total FPI withdrawals in 2025 so far have reached Rs 1.44 lakh crore. But in March they have invested Rs 10,955 crore in the Indian bond market, indicating that they are still looking for opportunities in the Indian market.

What will be the FPI stance going forward?

Market experts believe that the FPI stance will remain cautious in the coming weeks as well. They will keep a close eye on the US Federal Reserve's interest rates, the global economic scenario and geopolitical developments. If global uncertainties decrease and the Indian economy remains strong, FPIs may again actively invest in the Indian stock market.

Conclusion

The trend of foreign investors has given a big relief to the Indian stock market. However, there is still some volatility and investors need to be cautious. If FPI selling decreases further and their investment in the bond market continues, it could be a positive sign for the Indian stock market. In such a situation, investors should take their investment decisions while keeping an eye on market fluctuations.