India’s Stock Market: Foreign Investors Return with ₹4,223 Crore, Proving ‘You Can Take the Investor Out of India, But…’

GG News Bureau
Mumbai, 5th May: It’s like that friend who says they’ll never come back, but then, out of nowhere, shows up at your door asking for your Wi-Fi password. Yes, we’re talking about foreign investors—after months of pulling out from India’s stock market, they’ve made a dramatic reappearance with ₹4,223 crore invested in April. A three-month absence, and now they’re back like nothing ever happened.

In case you missed it, March wasn’t exactly a golden month for India’s stock market, with FPIs pulling out ₹3,973 crore. Before that, they sold off ₹78,027 crore in January. So, this return, though a relief, feels almost like an awkward reconciliation between an ex and their former partner—trying to make up for all the heartbreak, but still unsure if they’ll stick around.

VK Vijayakumar, the Chief Investment Strategist at Geojit Investments, seems hopeful that this time their return could lead to more consistent investment. But let’s be honest—FPIs’ commitment to India’s stock market feels a bit like the friend who cancels plans every weekend, only to show up unannounced when they feel like it. Sure, we’ll take them back, but are they really here for the long haul?

Why the sudden change of heart? Well, a mix of factors might be behind their decision—things like a weakening US dollar, a strong Indian rupee, and some solid earnings from major Indian companies. And of course, there’s the possibility of a trade deal between India and the US that has investors feeling a little more optimistic about the future. It’s like they’ve finally realized that India’s stock market might be the one that got away.

But here’s the real question: after pulling out ₹1.12 lakh crore so far in 2025, can we trust that these foreign investors will stick around this time? Are they truly back for good, or is this just a brief, transactional fling?

For now, we’ll take their money, but let’s not forget the past. In the world of stock markets, it’s hard not to be a little cautious when the “return of the prodigal investor” is announced. After all, how many times can we forgive and forget? Let’s hope this time, the investment is here to stay.