Foreign Investors Pump Over ₹3,346 Crore into Indian Stock Markets Amid RBI Rate Cut Optimism

Foreign portfolio investors (FPIs) put in ₹3,346.94 crore into Indian equity markets during the week, aided by renewed optimism after the Reserve Bank of India (RBI) unexpectedly reduced the interest rate. The decision to lower the repo rate to 5.5% triggered optimism and robust FPI inflows during the initial three days of trade for the week.

 

Key Highlights:

 

•⁠  ⁠FPIs pumped in ₹3,346.94 crore into Indian equities this week, spurred primarily by RBI's 50 basis point rate cut that boosted investor sentiment.

 

•⁠  ⁠Despite the first-week inflows, escalating geopolitical tensions between Iran and Israel triggered a sudden reversal, as FPIs withdrew ₹3,275.76 crore on Friday alone.

 

•⁠  ⁠Overall June FPI trend is still negative with net outflows of ₹5,402 crore so far this month, pointing towards continued market volatility. May 2025 was an exceptional month when foreign investors put in ₹19,860 crore—the largest monthly infusion this year.

 

Prospect:

 

Although the accommodative RBI stance has given a short-term fillip, FPI sentiment remains muted on account of continued global uncertainty and geopolitical tensions. Foreign inflows are likely to be volatile in the near term as investors tread the fine line between hope and fear. 

 

Source: Times of India, ChiniMandi, DT Next